|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.
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
Jan. 31, 2015 03:00 PM EST Reads: 3,596
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,742
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
Jan. 31, 2015 02:00 PM EST Reads: 3,898
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Jan. 31, 2015 01:15 PM EST Reads: 2,715
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Jan. 31, 2015 01:00 PM EST Reads: 2,057
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
Jan. 31, 2015 12:45 PM EST Reads: 1,801
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
Jan. 31, 2015 12:45 PM EST Reads: 1,970
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Jan. 31, 2015 12:00 PM EST Reads: 2,819
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Jan. 31, 2015 12:00 PM EST Reads: 8,164
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 11:45 AM EST Reads: 3,708
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Jan. 31, 2015 11:45 AM EST Reads: 2,846
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
Jan. 31, 2015 11:30 AM EST Reads: 2,399
ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ -- IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...
Jan. 31, 2015 11:15 AM EST Reads: 3,324
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Jan. 31, 2015 11:00 AM EST Reads: 3,446
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
Jan. 31, 2015 11:00 AM EST Reads: 2,556
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Jan. 31, 2015 10:45 AM EST Reads: 3,335
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
Jan. 31, 2015 10:45 AM EST Reads: 2,766
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Jan. 31, 2015 10:30 AM EST Reads: 2,618
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
Jan. 31, 2015 10:00 AM EST Reads: 3,275
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Jan. 31, 2015 10:00 AM EST Reads: 3,281