Good afternoon, this is the conference call operator. Welcome to IGD's conference call presenting H1 2023 results. Let me remind you that all participants are in listen-only mode. After the presentation, a Q&A will be held. To be assisted by an operator during the conference call, press star and zero on your phone keypad. Let me now turn the conference over to Mr. Claudio Albertini, CEO of IGD. You have the floor, sir.
Thank you very much. Good afternoon to all of you, as you probably read in our press release, this morning, the board of directors approved the half year report, as of, as at end of June 2023. I'm sure you received the, or downloaded the press release and the presentation. I'm gonna walk you through in a few minutes. Let's start from page three in the presentation, and we're looking at operating performance and occupancy rates.
As you can see, we have plus signs before the figures, especially on operating performances, that were applicable for the half year, but also in Q1 2023, we had an overall cumulative growth between 1st and 2nd quarter, equal to 8.5%, with footfalls increasing 6.6%, and the comparisons, of course, are with the 1st half of 2022. Tenant sales, we have to underline that tenant sales are not just the results of, or consequence of the impact of inflation we have in Italy, but also half of it is inflation effect, half of it is actual real growth achieved by our tenants. Footfalls went up. They are not yet back to the pre-pandemic levels in 2019.
We're still about 11, 12% below the pre-COVID levels, let's say the track has been set. Probably it won't go back to 2019 levels, as the average ticket has increased, all this is leading to the results you are seeing on tenant sales. Let's talk about occupancy. It's flat versus year-end, it's practically the same as that of Q1. We are at 95.2 in Italy. It's full occupancy between hypermarkets and malls. In Romania, we land at 96.8%. If we look at the next page, it's page 4 in the presentation, you see our financial highlights with the main indicators.
The main indicators, net rental income, as you can see, landing at just below EUR 60 million, so EUR 59.1 million, up 3.4%, but on a like-for-like basic basis, they would be 7.8%. Core business, EBIT down EUR 53.8 million, up 3.8% versus the same time frame in 2022. FFO, funds from operation, is close to EUR 31 million, down 9%. Let me remind you, as I did to the board meeting, it's, you shouldn't calculate EUR 31 million multiplied by two to have the full year result, because if you remember the guidance we gave you when we approved full year 2022, that is to say, in February, our guidance was EUR 53 million.
I'm somehow anticipating what you will see in the final slides. In the second half, we'll have a full effect of financial management on transactions that we have closed in May, around EUR 250 million. The market value of our real estate portfolio is slightly above EUR 2 billion, EUR 2.005 billion, down 3.6%. We'll look into this later, mainly driven or by or due to fair value valuation, which are negative. The EPRA NRV, the old NAV, NAV, is down 7.1%. It's EUR 9.54 per share. There again, you have an effect driven by valuation, fair value valuation, and also the dividend payout in May 2023, to EUR 0.30.
Valuations being the same by year-end, we expect a growth, not to go back to the value we had at the end of December, the range between EUR 54 and EUR 10. Operating performance, Q1 started really well, as you can see on the slide. We'd already given you the... Footfalls are up by 9.4%, and tenant sales up 12.7%. This is Q1 2023 versus Q1 2022. In the second quarter, we had a slowing down. However, values were still positive, and that leads to the data I showed you in the previous slide. Footfall's up 6.6%, half year-on-half year, and tenant sales up 8.5%. That was as far as shopping malls were concerned.
hypermarket and supermarkets that we own, a 4.6 increase between first and second half, so for the first 6 months of 2023. In the following slide on page 7, you see detail of a breakdown by product categories, where we have broken down our data so as to be able to show you the performance of tenant sales. Electronics as well, that is recovering somehow, versus a Q2 in 2022, where it was slowing down. It's back in the positive, +1.8%. Let me stress restaurants, even though the weight on total rents is relative, it's still a driving item for the shopping malls. It's up almost 21%, and this is a trend we have been identifying for a few quarters now.
It's picking up, even though we're not at pre-pandemic levels. Positive, as you can see, it's a trend that was already started in the post-pandemic time frame. It's household goods. They're up 17.2%. Let me stress, on a positive note, that clothing is also growing, and clothing has a very strong weight on our total rent. It's slightly, it's around 8.3%, as I said. The weight of clothing on our on our merchandising mix is 48.3%, almost 50%, accounts for almost 50% of our total rents. Then services up 6.6%, then culture, leisure, gift items are also growing. All positive trends.
The full average, the total average is 8.5%, half of it produced by the inflation effect, and we've tried to work that out product category, category by product category, and the rest is a real real growth, a real increase. Often, we are asked what the impact, what's the impact of online commerce, of e-commerce on our business. On page 8, you see some ideas that we would like to share with you. The e-commerce penetration rate on product is flat. It's been flat for three years in a row. We're talking 2021, 2022, and the first half of 2023, lands at 11%.
As you can see in the chart, we witnessed a growth between 2018, 2019 and 2020, and then the penetration of e-commerce on online versus products partly came to a stop and only grew up on the service side, services on product between 2021 and 2022. Every year in December, which is by definition, the month where you have a richer email performance with Black Fridays and the Christmas gifts, you see it's still flat even during the December month. Why was that? We have no more pandemic effect, where many people used to buy things online instead of going to physical shops because they couldn't go there. Our tenants, generally speaking, but also our people, our team, have been putting in place omnichannel strategies with both online and physical offering.
That is going to be the setup for the future. It's not going to be either e-commerce or physical commerce, but more and more, there'll be a blending of the two, a convergence of the two. Let's move on to page 9. Here we see leasing activities in Italy, how our portfolio did. 87 contracts, let me tell you, as you see in brackets, it's just a small sample. It's 4% of our total rent, so it's not very representative, of which 60 renewals and 27 turnover. There was a down sign of, downside of 4.4%, not very meaningful. We made a projection in the second half, on full year, we expect a -2%, there will be an upside. This is our forecast in the second half of 2023.
Bearing in mind that these 87 contracts were also, those have already factored in inflation, and they are inflation indexed, for about 7% on average. The, the effect has already been discounted, so renewals were with this extra percentage. Occupancy, as I said in the introductory slide, lands at 95.2%. It's flat versus Q1 2023, whilst the collection rate is around 92%. The performance is even better in Romania, where we had an upside of 2.3% on more than 300 contracts, 212 renewals, 99 turnovers. Occupancy was nearly 97%, again, flat versus Q1 2023, and the collection rate is even higher than that. For Italy, around, it's around 95%. On page 11, we see an example of...
We thought it was worth sharing because it's a virtuous example of how the turnaround of a shopping mall that had some problems in the previous years. Through this turnaround, a change of, on the one hand, a change of the food anchor and remodeling of the merchandising mix, we achieved this type of performance. See, footfalls went up 6% 16.16%, 2023 versus 2022. Occupancy is 100%, very interesting to notice is that with the downsizing of the hypermarket, we have 3 new medium services, 2 open and 1 will be open in September. The hypermarket productivity, thanks to the new remodeling, went up 77.0% per square meter.
We are in Palermo, La Torre, and it's a mall that is very satisfactory as a, as a performance. As an example, page 12, CSR, sustainability is part and parcel of our strategy. It's part of our business plan, and we have sustainability goals within our business plan. More than 50 goals were identified in our business plan, spanning 2022-2024. We are more halfway through it, halfway through the plan. With the closing of H1, we are halfway through the business plan, as I said. Therefore, we are perfectly aligned with achieving objectives. We hope we'll be very close to 100%, very close to 100%.
What we like to say is, or what we like to share, it's page 13 in the presentation, is the awards or the recognition we got in the industry. It's in the top part of the slide, first and foremost, in the bottom part of the slide as well, for the standing of the 2 dailies that awarded these prizes. It's Financial Times, and Il Sole 24 Ore, put us among the most virtuous companies from a sustainability perspective. Now, on page 14, I know it's small project, but small projects actually make companies great. I, I don't want to stress this too much, but this is something we really like doing, and we like to share with you, too.
We organized a so-called bee hotel, a hotel for bees, at our Centro Italia, Centro d'Abruzzo shopping mall. It's a bee garden. It's a small thing, but it's very, also it's very appealing, very interesting. Let's now move on to IGD's portfolio. It's page 16, 1, 6. As I said before, the first half saw a strong write-down impairment in the change of fair value. If you look at CapEx, about EUR 80 million, the effect you can read on the page. So we go from a total portfolio full year 2022, of EUR 2.80 million, to EUR 2.005 million, down 3.64%.
Then including a leasehold property, which is EUR 25 million, the only real estate investment, which is about EUR 20 million, we get to EUR 22,000,000,052 at the end of, sorry, first half of 2023. To be underlined is the increase in yield, the growth in yields. Net initial yield for the Italian portfolio, so shopping malls and hypermarkets, equal to 6%, whilst in Romania, it's 50 basis points higher, 6.5%. If we include step rents in different contracts, the net initial yield popped up, grows to 6.3% in Italy and to 7% for Romania. The growth was 50 basis points versus full year for Italy, Romania instead recorded 50 basis points growth versus full year 2022.
On the following page, you see the bridge of how we went from EUR 2.080 billion to EUR 2.005 billion. The very strong impact comes for Italy, EUR 69 billion worth of change in fair value, that's impairment. As you see in the central box, it's mainly driven or almost entirely driven by the applied interest rates, both for actual and the net exit yield, for actual yield and net exit yield. Less in Romania, even though both actual and net exit yield increased, but the effect on Romania, as you could see before, is much lower than that for Italy. Let me remind you that asset classes that you will see, that you see at the bottom of the slide, EUR 2.005 billion, is accounted for.
70% is malls, 19.1 is hypermarkets, then it's other EUR 73 million, 4.6%. As you can see on page 18, shopping malls, shopping centers, are confirmed to be a profitable asset class. Here we have a comparison between different asset classes, starting from offices, high street, logistics, hotel, high street, and also the BTP Govies 10-year BTP yield. Shopping malls, shopping centers, really stand out for the high amount of yield, which is on average 6.5%, but the average yield of IGD's mall is even higher. We're talking about net, net exit yield, it's almost 7%, 6.95%. If we go back to sustainability, page 19, we talk about our assets.
We have BREEAM certifications in use that we have acquired over the last few years. We have 10 shopping centers that are BREEAM-certified. The market value for these shopping centers is about two-thirds of our total Italian portfolio shopping mall portfolio. The certification was vertically obtained starting from the north, Milan, geographically, meaning vertically in Cornigliano, central Italy, but also southern Italy, Catania, then le Porte di Napoli acquired this certification, the BREEAM in use. As to the investment pipeline, page 20, our business plan spanning 2022, 2024 had assumed EUR 82 million in the first, with the first half, we are in line because we have raised to EUR 43 between 2022 and EUR 8 for this half year.
We have EUR 21 million in the pipeline in the second half to somehow make up for some delays that we had. Another EUR 19 million in 2024. We put them in a different color, a lighter color, the EUR 19 million. EUR 3 million in 2021 and EUR 19 million in 2024 because they are all non-committed investments. We're not forced to make them. It will very much depend on the financial situation, we can be very flexible in that respect. We are also about to complete, it's not gonna be the full, but it's the only development project we have for mixed use. It's a redevelopment project of the Livorno waterfront. The first Piazza Mazzini was completed a few years ago, both offices and residentials, so retail and residential.
We sold the last flat, 73rd, in this first half of 2023. We refurbished a historical building, the Edificio Orologio, with public spaces and the Livorno authorities being there, and we're about to open Officine Storiche, but also to move on in completing sales of the residential units. Officine, you see we already have a date. You're all invited, of course, to the opening. That will happen on September 14th, 2023, in the morning. The day before, on the 13th in the afternoon, we will have a press conference, and we will have a visit of the premises together with some, all the local authorities, the municipal authorities and other guests. Pre-letting is doing really well. We are in excess of 90%, nine-oh, with brands that are really top-notch. They are really attractive. Starbucks, for instance.
There's one we wanted to put, we cannot put it in yet. For contract reasons, I'm sure you know what, who we're talking about. I cannot name the name, but not even the initial, I can tell you. On the residential units, in addition to the 73 units in Piazza Mazzini, we had Officine Storiche. It's 42 flats, finished flats, and 29 of which have been sold. 3 already have a binding proposal, and the notary, deeds with the notary public will be in the second half, that is the current half. Probably 2 will be deferred to the first half of 2024. Cashing was EUR 7 million in 2022. The expectations for 2023 is another EUR 7 million. 2 projects underway, restyling projects. Let me give you an update. Portogruaro, Ascoli Piceno.
There was a complete restyling that started in January 2023 and should be completed by Q4 2023, by year end this year, with a full restyling of both the malls, the mall, and the external part. We also made a start on Centro Leonardo in Imola, in the province of Bologna. We started in May, a couple of months ago, practically, on the shopping center site, as far as the end of work, with the second quarter in 2024 for the external parts. As you, I'm sure you read it, also in the press, the catastrophe we had, the terrible floods we had in Emilia-Romagna, especially in the Romagna region, the big floods.
We, we wanted to tell you that the floods did not have, luckily enough, did not have a major impact or meaningful impact for IGD. We still have six locations in the area that was heavily flooded in the Romagna area. We have maybe five IGD shopping centers that are the largest for those areas, were not affected, or they were open except for one that was only closed for four days, temporarily closed for four days, out of precaution, for precautionary measure. The only center that was strongly affected was the Cesena Lungo Savio Shopping Center, which is very close to the Savio River, we are somehow refurbishing, we have all the necessary insurance coverage. We've triggered all the insurance coverage.
Luckily enough, we had an almost full coverage, insurance coverage, for the damage, catastrophe, damages, rent loss, you name it, everything is covered. The hypermarket opened at the end of June, so a month after the flood, practically. On June 24th, that the stores are still closed, but the idea is to open, even though not in full, open the shopping center on September 15th. Luckily enough, there was no major damage compared to an event that had 21 flooded rivers, landslides, floodings in 37 towns, et cetera. Let's move on to the economic and financial results.
We start from the net rental income, as you see on page 28, as we already said on the introductory slides, goes from EUR 57.1 to EUR 59.1, thanks to an improvement in the rental income delta. Also thanks in a reduction in rental costs. The growth was quite consistent, see 5.4 Galleria Italia, 5.7, 5% hypermarket, 5.7% Romania. Growth for the three asset classes that we have. Core business, EBITDA, and I'm referring to the following page, page 29.
We have a strong improvement of 1.5%, percentage point of the EBITDA margin from EBITDA margin from core business EBITDA margin from 71.3 to 72.8, and EBITDA margin for same hold, 73.3 to 75.1, so 1.8 percentage points of growth. Financial management. Financial management, it was growing, and we had projected it for the transactions we'd completed last year. In August, we issued the first green loan, EUR 215 million worth. This year, funding EUR 250 million drawn. Only EUR 130 million were drawn, it was a secured loan. The first one was a non-secured loan. Unsecured loan, sorry.
These loans were made at higher conditions than our average debt stock, which was slightly higher than 2%, so it went up about 1 percentage point. That's financial management going up 1 percentage point. EUR 0.96, the growth of those conditions. A EUR 4.7 million growth in the cost of financial management, and that will be applicable in H2 as well, even higher than that of the first half. Because in the first half, we only had 1.5 months of impact of the second loan, EUR 250 million, whilst in the second half we will have a full effect coming on stream. That leads us to page 31, FFO, funds from operations, going from 34 to EUR 30.9 million.
That is to say, 9% down versus 2022, same period to 2022. The decline was lower than expected. We should not do 30.9 multiplied by 2. We have slightly increased our guidance, but of course, it's not double this figure. Of course, it's not in excess of EUR 60 million. You'll soon see the exact figures. Moving on to EPRA indicators, page 32. Here, too, we've already underlined it in the introductory slide. NAV go from EUR 10.28 to EUR 9.54. Here you see the bridge leading to the impact on NAV per share. EUR 0.28, it's FFO per share, a decline of EUR 0.70 of fair value, or real estate assets fair value.
At EUR 0.30, that is only for this half year, it's the paid out dividends, it's EUR 0.30. Valuation being the same as at the end of 2022. NAV should increase, maybe not go back to the levels we had at the end of 2022, somewhere in between EUR 954 and EUR 1,028. Net financial position going to EUR 976 to EUR 982, up about EUR 5 million. Here on the screen, you can see cash flow generated in Q1 and Q2 for, from the operating results. EUR 0.30 dividend on 110 million worth of shares. Despite the dividend payout, IGD managed to be cash generative for about EUR 28 million in the half year.
Loan to value, mainly due to the impairments of fair value valuation, is up 200 basis points from 45.7%-47.7%. We expect by year-end, a loan to value valuation being the same, around, without disposals, of course, I'm being told around 47%, hovering around 47%. Cost of debt, about 1 percentage point higher, 0.96 basis point from 2.26%-3.22%. On the financial structure, I'm sure you'll have questions there during the Q&A. We confirm what we already disclosed when we presented our business plan. We want to retain, maintain a rigorous financial discipline consistent with an investment grade profile. We have two ratings. One is sub-investment grade, Fitch with negative outlook. I'm mistaken, S&P, says Mr. Albertini, corrects himself.
The two ratings, one is Fitch and one is Standard & Poor's, are being revised, both of them. We'll see in the next weeks and months what the two rating agencies will say. We want to have an early refinancing of maturities, and we're particularly referring to the EUR 400 million bond maturity in November 2024, but also the bond coming into maturity in January 2024. We already have that with the EUR 250 million loan, of which we've only drawn EUR 130 million, we'll draw another EUR 120 million close to maturity to close that loan, the Pricoa loan, a private placement we did about 7 years ago. I think we have proven a meaningful track record of financing and transaction and sustainable finance tools.
In the next slide, over the last 12 months, we have refinanced about 50% or more than 50% of our debt stock, EUR 486 million worth of debt stock, of which EUR 215 senior unsecured green loan. August 2022. The signing was just before the half year report, and the actual drawing of the loan was, of the facility, was in the following days. Then EUR 21 million worth of unsecured loans with SACE guarantee. Then, as I reminded you, the green secured loan, EUR 250 million, May, last May. Drawn were EUR 130 million. We still have EUR 120 million to draw, committed to draw, that we will need to restructure further debt. Then we have a slide for debt maturities in 2 pages.
That's going to be much clearer. That was phase one. We knew that in the business plan, 2022-2024, we were supposed to refinance almost our entire debt stock, so we are -- we're now done more than 50%. Phase three, as you can see, the refinancing of the EUR 400 million bond, maturity November 2024. Let me reiterate, it will be refinanced early on and net of disposal cash-ins. Disposals, which is phase two, are underway. Let me stress that both disposals and refinancing are two tracks that are running in parallel, but one does not exclude or rule out the other. Disposals can definitely help us in the refinancing activities. Talking about disposals, in the following slide, you can see we want to have a strategic asset rotation to reduce leverage.
In our business plan, disposals were optional. Now they're part, they're a fundamental part in our strategy. We want loan to value to go back to being below 45%. In, within the business plan, time range was going to be 40%, 43%, 43%. That can only be achieved through disposals, we are committed on that front, on our disposal strategy, and we are going, we hopefully are going to complete by year-end. These are the asset classes we had included in our business plan. It's a potential disposals around EUR 180 million-EUR 200 million. That might be they might change because we have investors who want bigger sizes than we have put in the, on the market.
It's supermarket, hypermarket, but we do not rule out some malls as well, shopping centers. We have Romania, which historically has been on sale, but the appetite for Romania is not very high now, even though we've had interactions in underway. There are three Porta a Mare plots of land to be developed, but this is a small, it's about EUR 20 million. It's a small portion of the total, but we're working on it to get all the necessary permits. Strategic rationale is reduce our financial leverage. That's the debt maturity profile. Thanks to the two transactions, we have refinanced between 2022 and 2023. We spread our debt maturity up to 2027, 2028. We are going to draw the facility in second tranche of the secured green loan facility to EUR 150 million.
130 were drawn, 120 will be drawn. Second tranche will enable us to refinance the debt expiring up until the first half of 2024, said Mr. Albertini. A final slide, then of course, I'll be, together with the colleagues, I'll be here ready to take your questions. I'm going to read it out. Considering the solid operating results achieved and based on the currently predictable scenario, the company expects FFO for full year 2023 to increase compared to what was disclosed on February 23rd, that is to say EUR 53 million. We expect a growth approximately EUR 54 million-EUR 55 million. First of all, to tell you about the better backdrop, the better operating results, read the note at the bottom of the page as well.
The estimate does not include the economic impact stemming from any refinancing transactions or disposals that could be completed in the second half of 2023. Of course, we want to engage in them, but we cannot estimate the timeline so far. So far, this is what we can share in an improvement of FFO, ordinary, somehow recurring and not as, as a one-off that takes into account the backdrop. We have about 20 minutes now for the Q&A. Thank you very much for your attention.
This is the conference call operator . We are now starting the Q&A. If you want to ask a question, press, please press star and one on your phone keypad. To be re-removed from the queue, press star and two on your phone keypad. Please ask your handsets to ask your questions.
If you want to ask a question, press star and one now, please. This question comes from the line of Ana Tereza, BTG Pactual, São Paulo. Please, madam.
Good afternoon to all of you. Thanks for the presentation. I have a couple of questions. The first one is about the market. We've seen that your portfolio valuation was mainly impacted by rates. Also would like to have a comment on the lack or scarcity of transactions we've witnessed over the last few months. What's your comment on that? A clarification on unencumbered assets on page 47. To avoid misunderstanding, the figure we see, will it cover the full value of the collateral provided, even though it was not fully drawn? If you can, it would be nice to have a bridge between values, between end of December and end of June to calculate the different effects, repayments, et cetera.
On the first question, Mr. Zoia will answer, and on the second question, Ms. Bonvicini, our CFO, will answer.
Good afternoon to all of you. As you said, the market, well, transactions in Italy were very weak in H1. It's EUR 2.2 billion of real estate transactions versus EUR 11 billion in 2022. It's definitely a much more, a much slower market. Then, of course, interest rates have an impact, and that have been somehow slowing down investments.
The, the increase in interest rates in the cost of money, so to say, makes it forces main investors in the real estate arena to be full equity investors, because otherwise it would be hard to finance these portfolios. Fair value-wise, the increase in interest rates led to an increase also in an increase in discount rates used in the DCF model, and also led to an increase of rates, exit rates, and that, and that generated the impairment, practically. At this stage, if we look at, if we break this impairment effect down, we see basically that hypermarkets and supermarkets are standing their ground, are holding their ground somehow.
That is, and that isn't the most interesting area for investors because it's long-term contracts that are less risky, in the investor's view, and instead, a much stronger impairment, this is what we are witnessing on shopping malls or shopping centers, because right now, they are perceived by investors as a riskier asset. When the CEO, our CEO, talked about disposals, he said that right now, what we are seeing, what we are witnessing, and we have started a number of dialogues. It's but mainly for hyper and supermarket asset classes, which are somehow a tail of the disposal, the EUR 140 million disposal we did in 2021, that's still a tail of that. The market that has been.
Growing in 2023 in Europe, I'm sure you know that there were supermarket transactions starting in the U.K., then also in France, Spain, Italy as well. There was one deal on six hypermarkets, MDSR. That's the market right now, it's that's the most, more responsive as a market than that for malls. Second answer, Andrea, maybe you would like to answer that.
Good afternoon. The value we have, it's EUR 1.274 billion, unencumbered assets, page 47. It's all the assets that also are used as collateral for the EUR 250 million facility, with the 1st tranche drawn in May. We closed other financial instruments, secured, they freed up other assets.
it takes that freeing up into account, and also the value of fair value on each single asset. We'll send the exact value to build the bridge to Claudia, and she will share them with you. This unencumbered EUR 1.2 billion worth of unencumbered assets, we have typical assets from our portfolio, seven of which are green assets for slightly less than EUR 0.5 billion.
Thank you very much. It's very useful if you could give me the actual data you have promised.
Thank you very much. Next question comes from the line of Simonetta Chiriotti with Mediobanca. Please, madam.
Good afternoon. I have three questions. The first one is on valuations. What you expect for the second half of the year, valuation-wise? We've seen interest rate movements.
According to you, will it be necessary to run a new appraisal evaluation, or what, what are the most likely scenarios according to you? Slide, slide page 9, instead, I'd like to understand if I understood correctly. When you say that there'll be a 4.4% downside, does it mean that, including inflation, does it mean that the contracts had already been adjusted for 7.2% inflation, and then renewed with a 4.4% discount? Last question, when you said early on, early refinancing, how early? What are we talking about, month-wise, time-wise? When is this really gonna be up and running?
Good afternoon, Simonetta. Let's say that with the impairments we applied in June, they were quite heavy. It was also presented in the slides.
We had an increase in excess of 100 basis points, driven by rate increases. We will see. We'll have to see in autumn how the ECB what the ECB will do. Should there be any signal of slowing down, maybe we could be more optimistic. Another one is, if transactions pick up again, maybe we could have a stabilization from that perspective. There's still, it's still an important piece of information we presented today. That is to say that today, the average of IGD's shopping malls, it's with a 6.95% cap rate, is very interesting if we compare it to many other asset classes. I think that we have come to a point where we have a valuation with embedding a major repricing. That's my perception.
Then between September and October, we'll see how rates will do, and if they pick up again. If, sorry, if transaction, not rates, if transactions pick up again, we'll be able to have a much more dynamic market.
This is Albertini speaking. I would like to add something in addition to what Roberto said. The interest rate growth that had an impact on valuation was not the only effect. There was another one. Should not be negative, but it always has been negative. It's appraiser rotation. In the first half, we had a full rotation of appraisers. If when you get a new appraiser, of course, they tend to be more conservative than the previous ones. It's not quantifiable, but you will have to bear that in mind, too. It did have an effect. On the second question, a clarification on page 9, we have Laura Poggi, who is our head of leasing activities.
What you said is correct. A very important piece of information, however, is that in these contracts, 35 of these renewed contracts had already been subject to adjustment because of inflation. If you deduct that, we have an even better effect. It has a positive twitch to it. It's a quite limited sample. It's 4.4% of our total rents. If in the second half, we get a -2, it means that in H2, we will have an upside offsetting the -4 of the first half. We talk about a delta of EUR 280,000 on this -4.4%.
By year-end, we will have contracts that should generate upside on shopping centers and should offset that.
On the last question, Andrea, on the timing of our refinancing.
Simonetta, as we wrote on page 35 in our financial strategy, we are going to refinance very early on. When we say very early on, we say 12 months in general, where even rating agencies think it's the right thing to do in compliance with our rating, current rating. This is the timeline we give ourselves. Of course, it very much also depends on disposals, and also the type of instrument we will choose will depend on the overall amount of the transaction.
Could it be the same type of modality that you used for the last, the latest refinancing?
Drawing these lines over time, it's still too early to say that because it very much depends on the instruments we will pick, and on whether or not disposals will kick in again. I can't tell you more about it.
Let me remind you that if you want to ask a question, you may press star and one on your phone. For further questions, you can press star and one on your phone. The first question comes from Antonio Casari with Northlight.
Good afternoon, thank you very much for taking our questions. My question is about shopping centers in Italy. Can you tell us about the cap rate you had on the transactions? Did you share anything about that? We apologize, we could not hear your question properly. Can you hear me better?
If you can raise your voice a little bit or get closer to the mic, because we find it very difficult to hear you.
Can you hear me better now?
Yes, slightly better. Thank you.
The 6 hypermarkets that you sold this year, is there any info you can give us about the cap rate or yield? Maybe it's not your transaction, but is there any info available in the market, something you can share with us? The second question, tied in with the previous question, being very early on, so 12 months before for the refinancing. As you do not yet have any disposals announced and the timeline to complete those disposals, I think, this the timeline is a bit tight, saying 12 months. Is there any alternative, any contingency plan, any contingency assumptions you've made also?
Of course, today we are talking to these investors, just like we did in the disposal we performed in 2021. We are talking to them, we are talking about fair value pricing. The big average for hypermarkets, yield-wise, is in excess of 6% versus 5.60, 5.60, which, which would be the, was the ICG portfolio, so slightly higher as a return of the yield. Then we will have to see what kind of transaction will come about. We'll be able to put together whether it's going to be the same ICG transaction we had with ICG, where we remain partner, partner within a vehicle, or whether it's going to be a 100% disposal.
On the timeline, it's clear it's a tight timeline, but today, as we do not have any news, final news, I mean, to share with you, we have to be very cautious. It is a pathway that we started quite a few months ago. The due diligence phase, this portfolio is much simpler than for shopping centers because there's one contract, it's a property, the revenue-generating properties or real estate with a track, a track record both for the permits, authorizations, the revenues. They are easy to see and track somehow. It's clear that right now, the main thing would be to, or will be to, in case of a binding agreement, to disclose it. If, as it happened with ICG, it will take 40 days to do the closing, it will still be all be very well.
The main thing is that we rapidly get to the binding offer, the binding proposal. We've opened a very interesting part there, and investors are the same that are active all over Europe for this size of property. It's quite a simple dialogue because the objects are the same all over Europe, in all countries.
Thank you very much. Thank you for the color. This 6% you gave for Italy, it did refer to a valuation parameter?
Yes, it's tied in with fair value. This is what we have in fair value. Now it's slightly higher. Because contracts for hypermarkets were increased by indexed according to the ISTAT requirements. I'm gonna tell you in a minute, I'll get back to the slide.
If you go to page 16, you will see that our hyper Italy go from 401 to 398. Basically, they are flat, hypermarkets Italy. Considering that there was an increase in rents, it means that yields went up. That for us is good, and for investors is good because they end up on a like-to-like basis, they have a higher rent and a higher yield. That was the effect, whilst the larger effect that you can see on page 16 was on shopping malls, where indeed there was an increase in rents, and you see in the EPRA yields. Also, there was also an increase of both actual and cap rate, rates that led to a 4.11% impairment or delta.
The effect on hypermarkets from versus December is that they are more profitable and more appealing. One last thing, when you talk about partner or cluster or group of investors with which you have dialogues and conversations, is it for the whole portfolio you want to dispose of hypermarkets? Is it different conversations with maybe smaller lots, with smaller investors? The core is the same for everyone, we are talking about EUR 170 million-EUR 180 million worth of hypermarkets. Then we came up with a menu, so to say. As Mr. Albertini often says, we have a menu because some investors want a bigger size of deals, others a smaller size. We're trying to come up, or we're waiting to see. We can be flexible, so that's the point.
I would stop here because there's not much more, because we have a time constraint, and we cannot give any more. It was interesting to understand that you have flexibility around the core.
That's very good. Thank you.
Mr. Albertini was asking the analysts to repeat. Yes, we are very flexible and very active on this. As Mr. Zoia said, once we have a binding agreement, of course, we have to inform the market, and we will disclose it, and you will get to know. So far, we're doing a very intense job across the board to get results. Then eventually, on the timeline, we thought we were clear enough in the previous answer for the refinancing. Andrea, would you like to reiterate what we said before?
What I would like to underline is that the 2 tracks, the 2 disposals and refinancing are 2 tracks, but they are connected with one another and not mutually exclusive. We will need a disposal, the results we'll get on disposal will then have an impact on the amount tied in with refinancing. The amount of disposals will have an impact on the type of instruments we will pick. We will try and stick to the timeline we gave you, and on the selection of the instrument, we'll tell you soon.
Thank you.
Before the questions proceed on one. Ladies and gentlemen, there are no more questions in the queue. Thank you very much for joining us today, and Well, enjoy your holidays. We hope you have good holidays. Thank you very much.