|By PR Newswire||
|November 21, 2012 03:43 AM EST||
TEL AVIV, Israel, November 21, 2012 /PRNewswire/ --
Reports a 10% increase in NOI, totaling NIS 275 million in Q3/2012
The FFO from real estate activity, totaling NIS 180 million, a 10% increase compared with third quarter 2011
Azrieli Group Ltd. (TASE: AZRG IT) reported today its results for the quarter ending September 30, 2012.
Third Quarter Financial Highlights
- NOI for the thirdquarter increased by approx. 10%, totaling NIS 275 million, compared with NIS 250 million in the same quarter in 2011.
- Increased same-property net operating income (NOI) of 6.1% over the third quarter of 2011.
- Funds from Operations (FFO) from real estate activity (relating to the Group's income-producing real estate business only) totaled NIS 180 million in Q3/2012, compared with NIS 164 million in the same quarter in 2011, a 10% increase.
- Quarter closed with an occupancy rate of 100% in all Israel segments including malls and shopping centers and offices and others, and for the assets in the USA segment at approx. 88%.
- Net profit (attributed to the shareholders) of NIS 194million in Q3/2012 compared with a net profit of NIS 179 million in the same quarter in 2011.
- Comprehensive profit(attributed to the shareholders) totaled an amount of NIS 284million in Q3/2012 compared with a comprehensive loss of NIS 36 million in the same quarter in 2011. This is mainly due to the increase in the net profit and the rise of the value of the Leumi shares in the TASE during the quarter.
1. For details see Section 1.1.6 of the Board of Directors' report as of September 30, 2012. Funds from operations (FFO) are a widely accepted supplemental measure of the performance of income-producing real estate companies and REITs.
Shlomo Sherf, Azrieli Group's CEO: "The quarterly results are good, and reflect growth in all the business parameters. We are continuing to identify investment opportunities and fulfill our long-term commitment to initiation and development in the Israeli market."
1-3 2012 financial results summary:
NIS in millions change Q3 2011 Q3 2012 10% 250 275 NOI 6.1% 244 259 Same property NOI FFO from real estate 10% 164 180 activity 8% 105 113 EPRA NAV per share
1-9 2012 financial results summary:
NIS in millions change 1-9 / 2011 1-9 / 2012 12% 724 812 NOI 3.9% 697 724 Same property NOI FFO from real estate 13% 472 535 activity Change in fair value of income producing real (80%) 463 93 estate 8% 105 113 EPRA NAV per share
Core Business Operations
Third quarter operating results for the shopping centers, offices and others, and the assets in the U.S segments:
Shopping Center Portfolio in Israel
- Total net operating income (NOI) totaled NIS 177 million, an increase of 5% over the parallel quarter of 2011;
- Same-property NOI increased by 4.3% over the parallel quarter of 2011;
- The average occupancy rate in this segment remains close to 100%; and
- The increase in these parameters during the quarter continues to show the consistent growth trend recorded in the last quarters.
Office Space and Others Portfolio in Israel
- Total net operating income (NOI) totaled NIS 71 million, an increase of 1% over the equivalent quarter in 2011;
- Same-property NOI increased by 1.4% over the parallel quarter of 2011;
- The average occupancy rate in this segment remains close to 100%; and
- The increase in these parameters during the quarter continues to show the consistent growth trend recorded in the last quarters.
Income-Producing Real Estate Portfolio in the U.S.A.
- Total net operating income (NOI) totaled NIS 27 million, an increase of NIS 15 million over the parallel quarter of 2011;
- Same-property NOI increased by 58.3% over the parallel quarter of 2011;
- The average occupancy rate in this segment was approx. 88%; and
- The NOI increase is attributed to the increase in the NOI in the Galleria Towers and to the acquisition of Plaza property in Houston, Texas.
Acquisitions, Development and Redevelopment Activities
- During the quarter, the Group's investments in income producing real estate totaled NIS 52 million. The investments were made in relation to new acquisitions, enhancement of existing properties, and investments towards properties under development.
- Since the beginning of the 2012 calendar year, the Group's investments in income-producing real estate totaled NIS 612 million.
- The estimated cost-to-completion of the projects under development as of 30.09.2012 stands at NIS 2.1-2.3 billion.
- Azrieli Center Sarona, Tel Aviv - construction permit received and excavation and shoring work were commenced at the site.
- Azrieli Rishonim mall - the Company opened the temporary parking lot on the site, and chose a constructor for excavation.
- In October 2012, the group completed the acquisition of its partner's share (50%) in the Petah-Tikva Science and Technology Project, for NIS 49 million. The cost represents a yield of approx. 11.5% allowing the projected NOI in 2012.
- Purchase of land at 146 Menachem Begin Road, Tel Aviv (Northern Central Business District) from Clalit Health Services - in November 2012, the Company purchased land on an area of 10,000 sqm, designated for the construction of a project of 75,000 sqm (48,000 sqm of offices, 10,000 sqm retail space and 17,000 sqm residential) and 1,500 parking spaces, in consideration for NIS 240 million.
After the date of the report, the Company paid the first installment (20%) for the land in the sum of NIS 48 million. Another 25% will be paid on June 15, 2013 and the balance on the handing over date.
The handing over of the lot is scheduled for no later than December 31, 2014. However, the seller may postpone the handing over date by one year, against a predetermined payment. The construction costs (initial estimate) are expected to amount to NIS 700 million.
Balance Sheet (extended standalone) as of 30 September 2012
- The Group's cash and cash equivalents totaled NIS 563 million.
- The Group also has financial investments available for sale in Bank Leumi and Leumi Card, with a fair value of approx. NIS 1.26 billion.
- The net debt totaled NIS 4.1 billion.
- The value of the Company's income-producing properties totaled some NIS 14.5 billion, compared with approx. NIS 13.4 billion on 30.09.2011.
- The value of the Company's assets under development totaled some NIS 1 billion, compared with approx. NIS 870 million on 30.09.2011.
- Shareholders' equity totaled to approx. NIS 11.4 billion compared with NIS 11.2 billion on 30.09.2011, the increase is attributed to the profit during the period, furthermore to the dividend paid in April 2012 (NIS 240 million).
- Equity per share totaled to approx. NIS 94 compared with approx. NIS 92.6 on 30.09.2011.
- The equity to balance sheet ratio is approx. 61.3%.
- The Company owns unpledged assets worth NIS 9.8 billion.
- EPRA NAV per share totaled NIS 113, compared with NIS 105 as of 30.09.2011 - Approx. 8% increase.
Granite HaCarmel (100% holding) - Net profit of NIS 38 million in Q3/2012, compared with a net profit of NIS 13 million in Q3/2011 (attributed to the shareholders).
In September 2012, a full tender offer for Granite's publicly-held shares was accepted. As of the Report Release date, Granite is a private company.
Bank Leumi (approx. 4.8% holding) - In Q3/2012, the share value on TASE increased by 17%, a NIS 110 million increase in the Group's holding value in the Bank. Net of tax, the increase was NIS 91 million.
From the end of the quarter until the date of release of the report, the share value increased by 15% representing an increase of NIS 101 million in the Group's holding (net of tax).
Leumi Card (20% holding) - The holding book value as of 30.09.2012 stood at NIS 483 million.
The Company remains committed to its core business objectives:
- Increasing shareholder value through the ownership, management, and selective acquisition of malls, shopping centers and office space - mainly in Israel;
- Continued examination of business opportunities in Israel and overseas, in connection with the expansion of its business, mainly in the real estate sector, including the acquisition of land reserves, the purchase of additional properties and the improvement of existing properties.
- Maintaining a high occupancy rate and accelerated promotion through marketing of the leasable space in the properties under development and construction.
- Maintaining financial strength despite acquisitions and massive development projects.
The Company will hold its quarterly conference call, hosted by the Company's senior management on Wednesday, November 21, 2012 at 16:00 Israel local time (15:00 CET; 14:00 United Kingdom time and 09:00AM New York time). The call will include a review of the Company's Q3/2012 performance, as well as a discussion of the Company's strategy and expectations for the future.
A Question & Answer session will follow the discussion.
To participate, please dial 03-9180664 from Israel, 1-888-281-1167 from the US, 0-800-917-9141 from the UK, 0-800-022-9568 from the Netherlands 1-866-485-2399 from Canada and +972-3-9180664 internationally.
A replay will be available for 2 days by dialing 03-9255925 from Israel, 1-888-295-2634 from the US and Canada 0-800-028-6837 from the UK, 0-800-023-4246 from the Netherlands and +972-3-9255925 internationally.
Access to the presentation will be available through the Company's website at http://www.azrieli.com under "Investor Relations → Presentations."
About Azrieli Group
Azrieli Group Ltd. owns and operates one of Israel's largest portfolios of malls, shopping centers and office properties nationwide. The Company is publicly traded on TASE under the symbol AZRG IT and is included in the TA-25 and TA-real-estate 15 indices. It is the only Israeli stock included in the EPRA Index. As of September 30, 2012, the Company has an equity market capitalization of about $2.5 billion. The Company operates mainly in Israel, and owns and manages properties with a gross leasable area of approx. 718,000 square meters; the Company has interests in 13 shopping centers comprising 256,000 square meters of leasable space across Israel, 8 office properties comprising 282,000 square meters of leasable space across Israel, and 5 properties overseas (mainly in Houston, Texas) comprising 179,000 square meters of leasable space. In addition, the Company has 6 projects under development comprising 325,000 square meters of leasable space in Israel. 90% of the fair value of investment properties and properties under development relates to domestic properties (in Israel). The Group has been specializing in shopping center and office space development, acquisitions, and management for the past 30 years. For further information, please visit the Company's website at http://www.azrieli.com.
Accounting and Other Disclaimers
The Company believes that publication of the FFO, which is calculated according to EPRA best-practice recommendations, better reflects the operating results of the Company, since the Company's financial statements are prepared in conformity with IFRS. In addition, publication of the FFO provides a better basis for a comparison of the Company's operating results between different reporting periods and strengthens the uniformity and the comparability of this financial measure to that published by European real estate companies.
As clarified in the EPRA and NAREIT position papers, the FFO measures do not represent cash flows from current operations according to accepted accounting principles, nor do they reflect the cash held by a company or its ability to distribute that cash, and they are not a substitute for the reported net income (loss). Furthermore, it is also clarified that these measures are not part of the data audited by the Company's independent auditors.
Forward Looking Statements
This press release may contain forward-looking statements relating to Azrieli Group's operations and the environment in which it operates that are based on Azrieli Group's expectations, estimates, forecasts and projections. These statements may be identified by their use of forward-looking terminology such as "believes", "expects", "may", "should", "would", "will", "intends", "plans", "estimates", "anticipates" and similar words. These statements are not guarantees of future performance and involve risks and uncertainties that are impossible to control or predict. Actual outcomes and results may differ materially from those expressed or implied in these forward-looking statements. We refer you to our latest annual report and current interim financial statements, both of which are available on Azrieli Group's website, for a discussion of the risks and uncertainties associated with forward-looking statements. Therefore you should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements speak only as of the date on which such statements are made except as required by laws and regulations. Azrieli Group undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
The Company refers you to the documents filed by the Company from time to time with the Israel Securities Authority, specifically the section titled "Risk Factors" in the Company's Annual Report for the year ended December 31, 2011, as may be updated or supplemented in the Company's immediate filings, which discuss these and other factors that could adversely affect the Company's results.
Please note that this document should not be regarded as a substitute for reading the original Hebrew version of the Company's reports in full. The financial data in this document relates to the solo extended report (unaudited) unless otherwise stated. The full and legal version of the Company's reports, in Hebrew, were released by the Company on November 21st, 2012 and may be reviewed on the Israeli MAGNA website at http://www.magna.isa.gov.il
For Additional Information
Full copies of the Company's financial statements are available on the Azrieli Group's website at http://www.azrieli.com, in the IR (Investor Relations) section. To be included in the Company's e-mail distributions, and to receive press releases, news and other Company notices, please send e-mail addresses to Mr. Moran Goder, Head of Investor Relations, at [email protected], Tel: +972-3-6081310.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Apr. 25, 2017 05:45 PM EDT Reads: 989
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 25, 2017 05:15 PM EDT Reads: 2,165
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 25, 2017 04:45 PM EDT Reads: 2,632
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Apr. 25, 2017 04:45 PM EDT Reads: 359
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 25, 2017 04:30 PM EDT Reads: 2,288
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 25, 2017 04:15 PM EDT Reads: 1,998
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 25, 2017 04:00 PM EDT Reads: 942
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
Apr. 25, 2017 03:04 PM EDT Reads: 260
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Apr. 25, 2017 03:00 PM EDT Reads: 449
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 25, 2017 02:45 PM EDT Reads: 1,245
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Apr. 25, 2017 02:45 PM EDT Reads: 508
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 25, 2017 02:30 PM EDT Reads: 531
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
Apr. 25, 2017 01:45 PM EDT Reads: 323
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 25, 2017 12:30 PM EDT Reads: 1,219
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 25, 2017 12:15 PM EDT Reads: 972
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Apr. 25, 2017 10:30 AM EDT Reads: 656
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Apr. 25, 2017 10:15 AM EDT Reads: 2,105
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 25, 2017 10:00 AM EDT Reads: 1,007
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Apr. 25, 2017 09:45 AM EDT Reads: 1,221
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Apr. 25, 2017 09:00 AM EDT Reads: 1,092