|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.
SOURCE Azrieli Group Ltd
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Aug. 30, 2015 01:30 PM EDT Reads: 207
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Aug. 30, 2015 01:00 PM EDT Reads: 261
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 30, 2015 10:30 AM EDT Reads: 861
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Aug. 30, 2015 10:15 AM EDT Reads: 211
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Aug. 30, 2015 09:15 AM EDT Reads: 605
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Aug. 30, 2015 09:15 AM EDT Reads: 435
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Aug. 30, 2015 08:30 AM EDT Reads: 388
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
Aug. 30, 2015 07:00 AM EDT Reads: 119
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 30, 2015 01:00 AM EDT Reads: 432
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 30, 2015 01:00 AM EDT Reads: 388
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Aug. 29, 2015 10:30 AM EDT Reads: 115
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Aug. 29, 2015 07:45 AM EDT Reads: 136
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Aug. 28, 2015 07:45 PM EDT Reads: 203
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 28, 2015 06:00 PM EDT Reads: 335
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Aug. 26, 2015 07:00 AM EDT Reads: 127
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Aug. 2, 2015 11:15 AM EDT Reads: 552
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 478
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 30, 2015 07:30 PM EDT Reads: 1,563
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Jul. 30, 2015 02:30 PM EDT Reads: 279
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jul. 30, 2015 12:00 PM EDT Reads: 2,225