GREAT THINGS HAPPEN WHEN | FINANCIAL RESULTS |
YOU OWN GREAT REAL ESTATE | FIRST QUARTER 2019 |
BRIDGE TOWER|NEWYORK | G | KFAR SABA | INTERNACIONAL SHOPPING|SÃOPAULO | ||
G-CITY|RISHON LEZION | ||||
G - TZAMERET | TEL AVIV | SHOPPING LIGHT|SÃOPAULO | BRICKELL GATEWAY I MIAMI I FL | |
CEASAR'S BAY BAZAAR I BROOKLYN I NEW YORK
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
DISCLAIMER
This presentation may include forward-looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues. Forward-looking statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other financial items. Forward- looking statements may also relate to our business strategy, goals and expectations concerning our market position, future operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and can be identified by the use of forward-looking terminology such as the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases.
Any forward-looking information contained in this presentation is based, in addition to existing information of the Company, on present Company expectations and evaluations regarding future developments and trends and on the interaction of such developments and trends. Although we believe the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect. Our business and operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current expectations and are not guarantees of future performance.
Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in this presentation depending on a variety of factors including those described in greater detail in our Periodical and Annual Reports, Registration Statement on Form F-1, Registration Statement on Form F-3, Annual Report on Form 20-F and in other information we file and furnish including, but not limited to, with the Israel Securities Authority, the U.S. Securities and Exchange Commission, and the Canadian Securities Administrators, including under the heading "Risk Factors."
All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable securities laws, we undertake no obligation to update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this presentation.
The information contained herein does not constitute a prospectus or other offering document, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Gazit-Globe Ltd. or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with or relating to any action, contract, commitment or to the securities of Gazit-Globe Ltd.
2
FIRST QUARTER 2019
STRONG OPERATIONAL PERFORMANCE OF THE PORTFOLIO
Same Property NOI growth in the quarter (excluding Russia) of 2.7% compared to Q1/2018 NOI (proportionate) increased by 8.5% in the quarter IMillion NIS
10.9% | |||||
5.2% | 2.7% | 331 | |||
1.4% | 1.1% | ||||
305 | |||||
-0.3% | |||||
Canada - FCR Northern EuropeCentral Eastern | Brazil | Israel | TOTAL* | ||
Europe* | Q1/2018 | Q1/2019 | |||
- Same Property NOI in Central and Eastern Europe including Russia grew 0.2% and 2.3% on the Group Level.
Directly held investments comprises 50% of the | Operating Cash Flow Per Share in the Quarter | FFO per share in the quarter- Excluding Regency | ||||||||
portfolio | (Expanded Solo)*** | |||||||||
Public 50% | INIS | INIS | ||||||||
0.17 | ||||||||||
50% | 0.57 | w/o | 0.70 | 0.91 | ||||||
Private | 0.45 | REG | ||||||||
31/3/2019 ** | Q1/2018 | Q1/2019 | ||||||||
Q1/2018 | Q1/2019 | |||||||||
** Including the acquisition of Marketplace in Boston | *** Before Special dividend from ATR. | |||||||||
completed in April 2019 for approx. US$ 81.8. | ||||||||||
GREAT THINGS HAPPEN WHEN
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3
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
FIRST QUARTER 2019
Main Highlights
Wholly Owned Subsidiaries
- NOI for the private subsidiaries in the quarter increased by 35.5% to NIS 103 million compared to NIS 76 million.
- Same Property NOI Growth in the quarter of 10.9% and 1.1% in Brazil and Israel, respectively.
- Same Property Sales in the quarter increased by 7.4% and 1.0% in Brazil and Israel, respectively.
- Average monthly base rent increased in Brazil and Israel.
Average Monthly Base Rent | Same | Same | ||||||||
NOI (NIS million) | Per Sqm | |||||||||
Same | Property | Property | ||||||||
Property NOI | Sales | Visitors | ||||||||
Occupancy | (YoY) | Q1/2019 | Q1/2018 | Change % | 31.3.2019 | 31.3.2018 | Change % | Growth (1) | Growth (1) | |
Brazil | 96.2% | 10.9% | ₪ 48 | ₪ 28 | 71.4% | BRL 67.0 | BRL 58.0 | 15.5% | 7.4% | 10.8% |
Israel | 98.4% | 1.1% | ₪ 42 | ₪ 39 | 7.7% | ₪ 108.3 | ₪ 105.7 | 2.5% | 1.0% | 4.0% |
US | 91.3% (2) | NA | ₪ 9 | ₪ 5 | 80.0% | NA | NA | NA | NA | NA |
Germany | NA | NA | ₪ 4 | ₪ 4 | - | NA | NA | NA | NA | NA |
Total | 103 | 76 | 35.5% |
- Same Propery Sales and visitors growth in Israel is calculated in a period between January to April 2019 comared to same period in 2018 due to the Passover timing which in 2019 took place in April while in 2018 Passover was in March.
- Occupancy level in US exludes Brickell in Miami which will be demolished and Ceasar's Bay in New York which as of March 31, 2019 was 73.6% occupied and post the reporting date signed leases for most of its vacant space.
4
Two ongoing projects are expected to be completed in the fourth quarter of 2019 and to increase the Company's NOI by
approx. NIS 22 million annually.
Four developments and expansions projects in planning stages in a total investment of approx. NIS 900-960 million (Company's share) which will increase the NOI by approximately NIS81-88million annually (Company's share).
Cost to | Expected Annual | ||||||||||||||
Gross | Complete | Investment at | Expected | NOI, Gazit's | |||||||||||
Leasable Area | (100%, NIS | 31/3/2019 (NIS | Annual NOI | Share (NIS | |||||||||||
Project | Location | (GLA, Sqm) | Use | Gazit's Share | Completion | million | million) | (NIS million) | million) | ||||||
To be completed in 2019 | |||||||||||||||
G Kochav Hazafon | Tel Aviv, Israel | 2,200 | Retail | 100% | Q4/2019 | 13 | 101 | 7 | 7 | ||||||
G Fashion | Rishon Lezion, Israel | 13,265 | Retail | 100% | Q4/2019 | 63 | 107 | 15 | 15 | ||||||
Total Project to be completed in 2019 | 15,465 | 208 | 22 | 22 | |||||||||||
Development Pipeline in Planning Stages | |||||||||||||||
Water Factory - Decathlon store and head quarters (Construction started) | Kfar Saba, Israel | 13,611 | Commercial & | 25.5% | Q1/2021 | 164-174 | 13 | 12-14 | 3-3.5 | ||||||
Office | |||||||||||||||
G Kfar Saba - expansion of the retail and office tower (zoning has been submitted for | Kfar Saba, Israel | 40,000 | Commercial & | 51% | 510-550 | - | 39-42 | 20-22 | |||||||
the office tower) | Office | ||||||||||||||
Savyon- expansion of retail and office (zoning has been submitted and construction | Savyon, Israel | 4,500 | Commercial & | 100% | Q1/2021 | 47-52 | - | 6.5-7.5 | 6.5-7.5 | ||||||
expected to start by the end of 2019) | Office | ||||||||||||||
G City - Office tower (zoning has been submitted and objections date due at | Rishon Lezion, Israel | 60,000 | Commercial & | 100% | 615-645 | - | 52-55 | 52-55 | |||||||
14/5/2019 with no 3rd party objections) | Office | ||||||||||||||
Brickell - Company is examining several scenarios for usage of the 48 stories | Commercial, | ||||||||||||||
Miami, FL, US | 35,000 | Office and | 100% | NA | |||||||||||
building rights | |||||||||||||||
Lodging | |||||||||||||||
Total Development Pipeline in Planning Stages | 153,111 | (Company's share 119,900 sqm) | 109-119 | 81-88 | |||||||||||
G KOCHAV HAZAFON, DEVELOPMENT | G CITY (DEVELOPMENT EXPANSION) | SAVYON, EXPANSION | |||||||||||||
Q4 2019 | Q4 2019 | Q1 2021 |
GREAT THINGS HAPPEN WHEN
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GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
ISRAEL ISRAELGAZITISRAEL
DEVELOPMENT PIPELINE IN G CITY AND G KFAR SABA IN TOTAL INVESTMENT OF NIS 875-925 MILLION
G CITY OFFICE TOWER - INVESTMENT OF NIS 615-645 MILLION | G KFAR SABA OFFICE TOWER AND EXPANSION- |
INVESTMENT OF NIS 260-280 (COMPANY'S SHARE*) | |
ADDITIONAL BUILDING RIGHTS 60,000 SQM | ADDITIONAL BUILDING RIGHTS 40,000 SQM (COMPANY'S SHARE* 20,400 SQM) | |||||
Addition to G City, privately held 95,000 sqm GLA property on a land of approximately 19.7 | ||||||
The company is in the process of using its additional building rights to add | ||||||
acre in Rishon Lezion, the fourth largest city in Israel in part of Tel Aviv Metropolitan area. | prime commercial & office space to the existing shopping center. | |||||
The Company submitted for building permit of 10,000 sqm (108,000 sqf) | ||||||
The Company submitted zoning for 60,000 sqm (538,000 sqf) office tower based on | expansion of commercial space and a plan for 21 floors office tower on top of | |||||
the commercial area in the size of 31,700 sqm (341,000 sqf). | ||||||
approved building right.Objections date due at 14/5/2019 with no 3rd party objections. | ||||||
Zoning has been submitted for the office tower and the commercial | ||||||
expansion. | ||||||
* Company's share - 51% | 6 |
MARKETPLACE CENTER - RECENT ACQUISITION FOR APPROX. US$ 81.8 MILLION
MARKETPLACE CENTER I BOSTON I MA
15MANNUAL PEDESTRIANS FOOTFALL
389POPULATION WITHIN 3 MILES AREA (THOUSANDS)
$1063- MILE AVG.
HOUSEHOLD INCOME (TOUSANDS)
LEGEND
UNDERGROUND STATION
GREAT THINGS HAPPEN WHEN
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7
NORTH AMERICA GAZITHORIZONS
MARKETPLACE CENTER I BOSTON I MA
$450MInvestment*
11ofNumberAssets
Miami
New York | Boston |
47% | |
46% | |
IRREPLACEABLE ASSETS
WITHSTRONG
DEMOGRAPHICS
GREAT THINGS HAPPEN WHEN
YOU OWN GREAT REAL ESTATE
* Assets value as of March 31, 2019, including JV (Ceasar's Bay) and the acquisition of Marketplace in Boston completed in April 2019 for approx. US$ 81.8. | 8 |
SÃO PAULO GAZITBRASIL
Mais Shopping - Expansion of approx. 8,700 sqm completed and the government agency opened its services within the center
MAIS SHOPPING |SÃOPAULO
Q1/2018 Q1/2019 Growth
R$4.6M R$6.1M 33.3%
NOI
3.1M 3.7M 21.2%
Visitors
R$46M R$53M 14.9%
Sales
Gazit Brasil owns 7 assets in São Paulo metropolitan area with a total investment of approx. R$2.9 billion.
Occupancy as of March 31, 2019 is 96.2%, Same property NOI increased 10.9% compared to same quarter in 2018, Same Property Sales and visitors increased by 7.4% and 10.8% in the quarter compared to same quarter in 2018.
GREAT THINGS HAPPEN WHEN
YOU OWN GREAT REAL ESTATE
9
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
GAZITGLOBE
BUSINESS PLAN IN PROGRESS
INCREASING | 80% | 61% | 50% | PRIVATE | |||
OUR PRIVATE | 20% | 39% | 50% | #SHARE451 | |||
INVESTMENT | >60% | ||||||
SHARE | 2015 | 2018(December 31) | 31/3/2019 * | MID TERM | |||
80% / 20% | TARGET | ||||||
61% / 39% | # | ||||||
40% / 60% | |||||||
PUBLICPRIVATE
WHILE REDUCING LEVERAGE
63.2% | 62.0% | 53.9% | <50% | |
53.4% | 45.6% | |||
MID | ||||
2015 | 2016 2017 | 2018 | 31/3/2019 | TERM |
TARGET |
* Including the acquisition of Marketplace in Boston for approx. USD 81.8 million.
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STRATEGY | GAZITGLOBE | Focus on major cities in densely populated areas | |||||||||
77% | OF GAZIT'S ASSETS* ARE LOCATED IN 14 METROPOLITAN AREAS | ||||||||||
STOCKHOLM | TAMPERE | STOCKHOLM | 27% | ||||||||
HELSKINI | |||||||||||
OSLO | HELSKINI | OSLO | |||||||||
TALLIN | |||||||||||
COPENHAGEN | WARSAW | COPENHAGEN | 26 | ||||||||
PRAGUE | TALLIN | ||||||||||
WROCLAW | |||||||||||
BOSTON | TAMPERE | ASSETS | |||||||||
NEW YORK | |||||||||||
CENTRAL EUROPE: | 14% | ||||||||||
TEL AVIV | WARSAW | ||||||||||
MIAMI | PRAGUE | 7 | |||||||||
WROCLAW | |||||||||||
ASSETS |
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
SÃO PAULO
- The Company's relative share of the total value of the assets of the subsidiaries.
- Including G. Kfar Saba, G. Rishon Lezion, Savyon and two land parcels.
NEW YORK | 9% | |||
BOSTON | 11 | |||
MIAMI | ||||
ASSETS | ||||
SAO PAULO | 14% | |||
7 | ||||
ASSETS | ||||
METRO TEL | 13% | |||
AVIV** | ||||
10 | ||||
ASSETS | ||||
11 | ||||
G CITY I RISHON LE'TZION
FIRST QUARTER FINANCIAL
RESULTS 2019
41 WINTER STREET I BOSTON I MA
GREAT THINGS HAPPEN WHEN
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12
FIRST QUARTER RESULTS 2019 - HIGHLIGHTS
Q1/2019 | Q1/2018 | Change | |
NOI proportionate (NIS million) | 331 | 305 | 8.5% |
Same Property NOI growth | 2.7% | 3.7% | - |
FFO (NIS million) | 171 | 168 | 1.8% |
FFO Per Share (NIS) | 0.91 | 0.87 | 4.6% |
FFO excluding REG (NIS million) | 171 | 135 | 26.6% |
FFO p/s excluding REG (NIS) | 0.91 | 0.70 | 30.4% |
Operating Cash Flow Per Share (expanded solo) (NIS) | 0.57 | 0.45 | 26.7% |
Net Profit (loss) | 42 | (486) | - |
31.3.2019 | 31.12.2018 | ||
Shareholders' Equity (NIS million) | 8,540 | 9,301 | |
Shareholder's Equity Per Share (NIS) | 45.6 | 49.0 | |
LTV (Expanded Solo) | 45.6% | 53.9% | |
LTV (Consolidated) | 52.9% | 55.3% |
RAV CHEN MOVIE THEATRE I DIZENGOFF ST. I TEL AVIV
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
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GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
GAZITGLOBE
FIRST QUARTER 2019 - Main Highlights
Operating Cash Flow Per Share in the Quarter (Expanded Sol | o)* | FFO per share in the quarter- Excluding Regency | |||
NIS ו | NIS ו | ||||
0.87 | 0.91 | ||||
0.17 | |||||
0.57 | W/O | 0.70 | 0.91 | ||
0.45 | REG | ||||
Q1/2018 | Q1/2019 | Q1/2018 | Q1/2019 |
- Before Special dividend from ATR.
NOI (proportionate) increased by 8.5% in the quarter
NIS million ו
331
ח''ש ו 305
Q1/2018Q1/2019
14
MORUMBI| SÃO PAULO
FINANCIAL
STRENGTH
KOCHAV HATZAFON | TEL AVIV | BRIDGE TOWER I NEW YORK I NY | |
GREAT THINGS HAPPEN WHEN
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15
BUSINESS PLAN IN PROGRESS
Net Debt (expanded solo) | NIS million | LTV (Expanded Solo) |
14,079 12,48111,177
7,382
2016 2017 2018 31/3/2019
Unencumbered Assets | NIS billion |
76% of the private assets portfolio are unencumbered (compared to 51% in 2015), NIS 2 billion of them in Israel
6.3
2.2
31/12/2015 31/03/2019
GREAT THINGS HAPPEN WHEN
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63.2% | 62.0% | 45.6% <50% | |
53.4% | 53.9% | ||
MID | |||
2015 | 2016 2017 | 2018 31/3/2019 | TERM |
TARGET | |||
Liquidity - Company and it's wholly owned subsidiaries | NIS billion | ||
In addition to a NIS 5 billion liquidity, proceeds from the sale of FCR shares in the amount of approximately CAD 166 million (NIS 440 million) shall be payed to the Company no later than April 16, 2020.
4.6 | 5.0 | Unutilized | |||||
1.6 | |||||||
signed credit | |||||||
2.8 | facilities | ||||||
1.8 | 3.4 | Cash and | |||||
equivalent* | |||||||
31/12/2018 31/03/2019
- Including the proceeds from the sale of FCR shares after the quarter.
16
WELL STAGGERED DEBT MATURITY SCHEDULE -
EXPANDED SOLO AS OF 31/3/2019
Million NIS
3,000 | 12.1% | ||||||||||
2,500 | 12.3% | 12.9% | 14.0% | ||||||||
11.4% | 11.1% | ||||||||||
12.0% | |||||||||||
9.9% | 9.9% | 10.0% | |||||||||
2,000 | |||||||||||
8.0% | 10.0% | ||||||||||
1,500 | 1,031 | 1,106 | 1,166 | 1,088 | 8.0% | ||||||
896 | 894 | 997 | 906 | ||||||||
1,000 | 726 | 6.0% | |||||||||
2.3% | |||||||||||
500 | 209[1] | 4.0% | |||||||||
0 | (*) | 2.0% | |||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | ||
6.5% | 5.1% | 4.9% | 4.7% | 4.6% | 4.7% | 3.3% | 3.7% | 3.9% | 2.8% |
- Weighted average bond maturity:5years
- Weighted average interest rate:) Including Credit Facilities)3.9%
- Series 10 principal of NIS 209m with coupon of 6.5% which is secured by part of G City in Rishon Lezion, Israel.
GREAT THINGS HAPPEN WHEN
YOU OWN GREAT REAL ESTATE
17
THANK YOUFOR YOUR TIME.
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
CONTACT INFORMATION | Adi Jemini | Doron Lavi Segelson | ||
EVP & CFO | Head of Investor Relations | |||
+972.3.6948000 | +972.3.6948037/ dlavi@gazitgroup.com | |||
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Gazit-Globe Ltd. published this content on 22 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 22 May 2019 21:32:12 UTC