DGAP-News: Gazit-Globe Reports Second Quarter 2012 Financial Results
(firmenpresse) - Gazit-Globe
21.08.2012 09:48
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FFO for the Quarter Grew by 45% Totaling NIS 138 Million
Same Property NOI for the Period Grew by 3.8
TEL-AVIV, Israel, Aug. 21, 2012 (GLOBE NEWSWIRE) -- Gazit-Globe (TASE:GLOB)
(NYSE:GZT), one of the world's leading multi-national real estate companies
focused on acquisition, development and redevelopment of supermarket-anchored
shopping centers announced today its financial results for the three months
(the 'quarter') and six months (the 'period') ended June 30, 2012.
References to the 'Group' relate to Gazit-Globe's consolidated statements.
References to the 'Company' relate to Gazit-Globe's stand-alone financial
statements. Unless otherwise stated, financial information included in this
press release relates to the 'Group'.
Highlights:
-- NOI for the quarter increased by 11% to NIS 865 million compared to NIS 780
million for the same quarter last year
-- FFO for the quarter increased by 45% to NIS 138 million (NIS 0.84 per
diluted share) as compared to NIS 95 million (NIS 0.61 per diluted share)
for the same quarter last year
-- Investments during the quarter totaled NIS 1,836 million, compared to NIS
1,364 million the same quarter last year. Investments during the period
totaled NIS 2.85 billion, compared to NIS 4.74 billion the same period last
year
-- Net income attributable to the Company's shareholders for the quarter
totaled NIS 288 million (NIS 1.70 per diluted share) compared to NIS 281
million (NIS 1.80 per diluted share) for the same quarter last year
-- Total Same-Property NOI for the period grew by 3.8% compared to the same
period last year and occupancy rate as of June 30, 2012 increased to 94.5%
compared to 94.1% as of June 30, 2011
-- Shareholders' equity as of June 30, 2012 totaled NIS 7,906 million (NIS
48.0 per share), compared to NIS 6,253 million (NIS 40.5 per share) on June
30, 2011 and NIS 7,310 million (NIS 44.4 per share) as of December 31, 2011
-- EPRA NAV per share as of June 30, 2012 was NIS 56.2 compared to NIS 42.5
per share as of June 30, 2011 and NIS 49.4 as of December 31, 2011
-- As of June 30, 2012, the Group had cash on hand and unutilized revolving
credit facilities of NIS 8.5 billion, of which NIS 2.1 billion are at the
Company's level
-- As of June 30, 2012, net debt to total assets (LTV) was 57.5%, compared to
60.6% on June 30, 2011and 58.0% on December 31, 2011
-- Subsequent to June 30, 2012, the Company announced the completion of the
transaction to take Gazit America private. The Company acquired the
outstanding common shares of Gazit America not already owned by it and
First Capital Realty acquired its medical office and retail properties. As
part of the arrangement, FCR allocated approximately 4 million of its
shares to Gazit-Globe
-- Subsequent to June 30, 2012, the Company's private subsidiary Royal Senior
Care (60%) completed the transaction to sell the majority of its
wholly-owned senior housing properties in the U.S. The properties were sold
for a total gross consideration of US$ 230 million of which the Company's
portion is US$ 138 million. Royal Senior Care will continue to own its
joint venture interest in two senior housing properties, onefully-owned
senior housing community and a tract of land held for future development.
As result of this transaction, Gazit-Globe will record a gain of
approximately US$ 18 million and net proceeds of approximately US$ 70
million, all after transactions costs and before taxes
Roni Soffer, President of Gazit-Globe: 'We have concluded another strong
quarter in which we see the positive impact that the substantial investments
we have made over the last few years have had, among other things, on the
rental income, NOI and FFO, all of which have shown impressive growth. Recently
we announced two transactions, taking Gazit America private and selling the
majority of our senior housing facilities in the U.S. Both of these
transactions will have an immediate positive effect on operations and show the
group's ability to acquire, manage and develop properties and operations and
successfully recycle capital while creating substantial cash flow. These
transactions are part of our strategic plan to direct management's attention to
our core business while improving efficiencies and taking advantage of
opportunities in the global real estate market.'
Financial Highlights for the three months ended June 30, 2012:
-- Rental income increased by 11% to NIS 1,268 million compared to NIS 1,146
million in the second quarter of 2011
-- NOI increased by 11% to NIS 865 million compared to NIS 780 million in the
second quarter of 2011
-- Proportional consolidated NOI increased by 17% to NIS 539 million, compared
to NIS 459 million in the second quarter of 2011
-- FFO increased by 45% to NIS 138 million (NIS 0.84 per diluted share) as
compared to NIS 95 million (NIS 0.61 per diluted share) in the second
quarter of 2011
-- Net income attributable to the Company's shareholders for the quarter
totaled NIS 288 million (NIS 1.70 per diluted share) compared to NIS 281
million (NIS 1.80 per diluted share) for the same quarter last year
-- Cash flow from operating activities totaled NIS 283 million, compared to a
negative cash flow of NIS 20 million in the second quarter of 2011
-- The fair value gain from investment property and investment property under
development was NIS 718 million compared to NIS 543 million in the second
quarter of 2011
Financial Highlights for the six months ended June 30, 2012:
-- Rental income increased by 10% to NIS 2,527 million compared to NIS 2,289
million in the same period last year
-- NOI increased by 11% to NIS 1,705 million compared to NIS 1,534 million in
the same period last year
-- FFO increased by 48% to NIS 272 million (NIS 1.65 per diluted share) as
compared to NIS 184 million (NIS 1.19 per diluted share) in the same period
last year
-- Net income attributable to the Company's shareholders for the period
totaled NIS 546 million (NIS 3.24 per diluted share) compared to NIS 267
million (NIS 1.71 per diluted share) for the same period last year
Acquisition, Development and Redevelopment Activities
During the quarter, the Group acquired 11 income-producing properties totaling
110 thousand square meters and adjacent land parcels for future development for
the aggregate amount of NIS 1,862 million. The Group also invested an amount of
NIS 989 million in development and redevelopment projects.
As of June 30, 2012, the Group had 14 properties under development with a gross
leasable area of 297 thousand square meters and 29 properties under
redevelopment with a gross leasable area of 164 thousand square meters with a
total investment value of NIS 3,559 million. The additional cost to complete
the properties under development and redevelopment totals NIS 1,611 million.
Subsequent to June 30, 2012, the Company announced the completion of the
transaction to take Gazit America private. The Company acquired the outstanding
common shares of Gazit America not already owned by it and First Capital Realty
acquired its medical office and retail properties. As part of the arrangement,
FCR allocatedapproximately 4 million of its shares to Gazit-Globe.
Subsequent to June 30, 2012, the Company's private subsidiary Royal Senior Care
(60%) completed the transaction to sell the majority of its wholly-owned senior
housing properties in the U.S. The properties were sold for a total gross
consideration of US$ 230 million of which the Company's portion is US$ 138
million. Royal Senior Care will continue to own its joint venture interest in
two senior housing properties, one fully-owned senior housing community and a
tract of land held for future development. As result of this transaction,
Gazit-Globe will record a gain of approximately US$ 18 million and net proceeds
of approximately US$ 70 million, all after transactions costs and before taxes.
Financing Activities
-- As of June 30, 2012, the Group had cash on hand and unutilized revolving
credit facilities of NIS 8.5 billion, of which NIS 2.1 billion are at the
Company's level
-- During the quarter the Company announced a private placement of Debentures
(Series J) for immediate consideration of approximately NIS 175 million
together with Options to purchase Series K Debentures. Some of the Options
were exercised for an additional consideration of approximately NIS 60
million
-- In June 2012, the Company announced the extension of an existing US$200
million line of credit for 5 years with a maturity date of July 15, 2017
-- Subsequent to June 30, 2012, the Company sold all Citycon's convertible
debentures it held (Euro 42 million par value) of which Citycon purchased
back Euro 20 million par value
Balance Sheet Highlights
-- As of June 30, 2012, net debt to total assets (LTV) was 57.5%, compared to
60.6% on June 30, 2011and 58.0% on December 31, 2011
-- Shareholders' equity as of June 30, 2012 totaled NIS 7,906 million (NIS
48.0 per share), compared to NIS 6,253 million (NIS 40.5 per share) on June
30, 2011 and NIS 7,310 million (NIS 44.4 per share) as of December 31, 2011
-- EPRA NAV per share as of June 30, 2012 was NIS 56.2 compared to NIS 42.5
per share as of June 30, 2011 and NIS 49.4 as of December 31, 2011
Dividend
-- The Company's Board of Directors declared a quarterly cash dividend of NIS
0.40 per share payable on October 11, 2012 to shareholders of record as of
September 24, 2012. The quarterly cash dividend of NIS 0.40 per share
represents an annualized amount of NIS 1.60
ACCOUNTING AND OTHER DISCLOSURES
The Company believes that publication of 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 FFO provides a better basis
for the 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 property 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.
CONFERENCE CALL/WEB CAST INFORMATION
Gazit-Globe will host a conference call and webcast in English on Tuesday,
August 21, 2012 at 17:00 Israel Time, 15:00 United Kingdom/ 16:00 Central
European Time/ 10:00 a.m. Eastern Time to review the second quarter financial
results. Shareholders, analysts and other interested parties can access the
conference call by dialing 1 866 966 9439 (U.S./Canada) or 0800 694 0257 (U.K.)
or +44 (0) 1452 555 566 (International) or 1 809 216 057(Israel) or on the
Company's website www.gazit-globe.com.
For those unable to participate during the call, a replay will be available for
future review on Gazit-Globe's website under Investor Relations.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company's annual report is available on Gazit-Globe
website at www.gazit-globe.com. To be included in the Company's e-mail
distributions for press releases and other Company notices, please send e-mail
addresses to Ms. Avishag Kichel, International Investor Relations, at
akichel(at)gazitgroup.com.
ABOUT GAZIT-GLOBE
Gazit-Globe is one of the largest owners and operators of supermarket-anchored
shopping centers in the world. In addition, the Company is active in North
America in the healthcare real estate sector. Gazit-Globe is listed on the Tel
Aviv Stock Exchange (TASE:GLOB) and is included in the TA-25 and the
Real-Estate 15 indices in Israel. The Company is also listed on the New York
Stock Exchange (NYSE:GZT). The Group operates properties with a total value of
approximately $18.5 billion in more than 20 countries and owns and operates
over 600 properties with a gross leasable area of approximately 6.7 million
square meters. www.gazit-globe.com.
FORWARD LOOKING STATEMENTS
This release may contain forward-looking statements within the meaning of the
U.S. federal securities laws. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Such
statements involve a number of known and unknown risks and uncertainties, many
of which are outside our control, that could cause our future results,
performance or achievements to differ significantly from the results,
performance or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to such
differences include risks detailed in our public filings with the SEC. Except
as required by law, we undertake no obligation to update any forward-looking or
other statements herein, whether as a result of new information, future events
or otherwise.
**Some historical numbers were retroactively adjusted due new IFRS standards
Below please find excerpts from our second quarter report. For the full report
in English, please go to http://www.gazitglobe.com/financial-reports.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
-----------------------------------------------------------
June 30, December
31,
-----------------
2012 *) 2011 *) 2011
-----------------------------
Unaudited Audited
-----------------------------
NIS in millions
-----------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 1,442 982 1,539
Short-term deposits and loans 385 251 770
Marketable securities at fair value through 62 85 97
profit or loss
Available-for-sale financial assets 18 46 67
Financial derivatives 78 114 84
Trade receivables730 579 656
Other accounts receivable 284 362 291
Inventory of buildings and apartments for sale 645 514 697
Current tax receivable 21 26 14
-----------------------------
3,665 2,959 4,215
Assets classified as held for sale 636 260 714
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4,301 3,219 4,929
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NON-CURRENT ASSETS:
Investments in associates and jointly controlled 4,808 4,324 4,390
entities
Other investments, loans and receivables 442 151 308
Available-for-sale financial assets 357 239 314
Financial derivatives 883 1,036 937
Investment property 54,080 46,148 51,014
Investment property under development 3,063 1,814 2,198
Non-current inventory 23 23 23
Fixed assets, net 163 153 157
Goodwill 103 132 101
Other intangible assets, net 43 97 68
Deferred taxes 199 123 160
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64,164 54,240 59,670
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68,465 57,459 64,599
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*) Retroactively adjusted due to implementation of new IFRS standards, see Notes
2b, 2c and 6 of the financial statements.
The accompanying notes are an integral part of these interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
---------------------------------------------------------------------
June 30, December
31,
-----------------
2012 *) 2011 *) 2011
----------------------------
Unaudited Audited
----------------------------
NIS in millions
----------------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 289 491 453
Current maturities of non-current liabilities 2,906 2,137 3,525
Financial derivatives 25 16 25
Trade payables 785 625 819
Other accounts payable 1,236 1,051 1,218
Advances from customers and buyers of apartments 225 175 277
Current tax payable 30 27 53
----------------------------
----------------------------
5,496 4,522 6,370
Liabilities attributable to assets held for sale 83 187 103
----------------------------
5,579 4,709 6,473
----------------------------
NON-CURRENT LIABILITIES
Debentures 17,258 14,694 15,379
Convertible debentures 1,602 886 1,121
Interest-bearing loans from financial institutions 19,487 17,706 18,973
and others
Financial derivatives 385 110 339
Other financial liabilities 312 175 277
Employee benefit liability, net 7 5 8
Deferred taxes 2,805 2,079 2,401
----------------------------
41,856 35,655 38,498
----------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF
THE COMPANY
Share capital 218 208 218
Share premium 3,791 3,482 3,787
Retained earnings 4,318 3,569 3,904
Foreign currency translation reserve (557) (1,225) (728)
Other reserves 157 244 150
Loans granted to purchase shares of the Company **) -- (4) **) --
Treasury shares (21) (21) (21)
----------------------------
7,906 6,253 7,310
Non-controlling interests 13,124 10,842 12,318
----------------------------
Total equity21,030 17,095 19,628
----------------------------
68,465 57,459 64,599
============================
*) Retroactively adjusted due to implementation of new IFRS standards, see Notes
2b, 2c and 6 of the financial statements.
**) Represents an amount of less than NIS 1 million.
The accompanying notes are an integral part of these interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------------------
Six months ended Three months Year
ended ended
June 30, June 30, Decembe
r 31,
---------------------------------
2012 *) 2011 2012 *) *) 2011
2011
-----------------------------------------
Unaudited Audited
-----------------------------------------
NIS in millions (except per share
amounts)
-----------------------------------------
Rental income 2,527 2,289 1,268 1,146 4,718
Revenues from sale of buildings, land 932 279 456 279 1,001
and contractual works performed
-----------------------------------------
Total revenues 3,459 2,568 1,724 1,425 5,719
-----------------------------------------
Property operating expenses 822 755 403 366 1,522
Cost of buildings sold, land and 885 264 430 264 967
contractual works performed
-----------------------------------------
Total cost of revenues 1,707 1,019 833 630 2,489
-----------------------------------------
Gross profit 1,752 1,549 891 795 3,230
Fair value gain from investment 1,031 614 718 543 1,670
property and investment property
under development, netGeneral and administrative expenses (327) (318) (165) (178) (733)
Other income 125 45 35 29 119
Other expenses (17) (11) (12) (11) (114)
Group's share in earnings of 154 197 74 128 334
associates and jointly controlled
entities, net
-----------------------------------------
Operating income 2,718 2,076 1,541 1,306 4,506
Finance expenses (1,097) (1,060) (591) (490) (2,197)
Finance income 45 29 19 13 72
-----------------------------------------
Profit before taxes on income 1,666 1,045 969 829 2,381
Taxes on income 343 201 211 157 328
-----------------------------------------
Net income 1,323 844 758 672 2,053
=========================================
Attributable to:
Equity holders of the Company 546 267 288 281 719
Non-controlling interests 777 577 470 391 1,334
-----------------------------------------
1,323 844 758 672 2,053
=========================================
Net earnings per share attributable to equity holders of the Company (NIS):
Basic net earnings 3.31 1.73 1.74 1.82 4.65
=========================================
Diluted net earnings 3.24 1.71 1.70 1.80 4.30
=========================================
*) Retroactively adjusted due to implementation of new IFRS standards, see
Notes 2b, 2c and 6 of the financial statements.
The accompanying notes are an integral part of these interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
-----------------------------------------------------------------
Six months Three months Year
ended ended ended
June 30, June 30, December 31,
------------------------------
2012 *) 2012 *) *)
2011 2011 2011
-------------------------------------
Unaudited Audite
d
-------------------------------------
NIS in millions
-------------------------------------
Net income 1,323 844 758 672 2,053
-------------------------------------
Other comprehensive income (loss) (net of
tax effect):
Exchange differences on translation of 428 47 657 (183) 1,139
foreign operations
Realization of exchange differences on 3 12 -- 12 12
translation of foreign operations
Net gains (losses) on cash flow hedges (37) 40 (63) (31) (139)
Net gains (losses) on available-for-sale 34 (20) 33 (6) (39)
financial assets
Gain on revaluation of fixed assets in 16 9 19 10 28
jointly controlled entity
-------------------------------------
Total other comprehensive income (loss) 444 88 646 (198) 1,001
-------------------------------------
Total comprehensive income 1,767 932 1,404 474 3,054
=====================================
Attributable to:
Equity holders of the Company **) 752 368 575 186 1,231
Non-controlling interests 1,015 564 829 288 1,823
-------------------------------------
1,767 932 1,404 474 3,054
=====================================
**) Composition of comprehensive income attributable to equity holders of the
Company:
Net income 546 267 288 281 719
Exchange differences on translation of 171 76 263 (96) 573
foreign operations
Realization of exchange differences on 2 12 -- 12 12
translation of foreign operations
Net gains (losses) on cash flow hedges (17) 22 (28) (13) (66)
Net gains (losses) on available-for-sale 34 (18) 33 (8) (35)
financial assets
Gain on revaluation of fixed assets in 16 9 19 10 28
jointly controlled entity
-------------------------------------
752 368 575 186 1,231
=====================================
*) Retroactively adjusted due to implementation of new IFRS standards, see Notes
2b, 2c and 6 of the financial statements.
The accompanying notes are an integral part of these interim consolidated
financial statements.
The table below presents the For the 6 For the 3 For the
calculation of the Company's FFO, year
computed according to the directives
of EPRA, and its FFO per share for
the stated periods:
---------------------------------------
months ended months ended ended
June 30 June 30 Decembe
r 31
---------------------------------
2012 2011(* 2012 2011(* 2011(*)
) )
-----------------------------------------
NIS in millions (other than per share
data)
-----------------------------------------
Net income attributable to equity 546 267 288 281 719
holders of the Company for the period
-----------------------------------------
Adjustments:
Fair value gain from investment (1,031) (614) (718) (543) (1,670)
property and investment property
under development, net
Capital loss on sale of investment 13 11 10 12 63
property and investment property
under development
Impairment of goodwill -- -- -- -- 38
Changes in the fair value of 35 32 13 (51) 179
derivatives measured at fair value
through profit and loss
Adjustments with respect to companies (47) (85) (48) (88) (131)
accounted for using the Equity
methodLoss from decrease in holding rate of 1 1 (**)-- 1 1
investees
Deferred taxes, current taxes with 333 195 206 155 324
respect to disposal of properties
Gain from bargain purchase (119) (26) (37) (26) (102)
Acquisition costs recognized in 6 21 3 15 21
profit and loss
Non-controlling interests' share in 401 236 287 213 654
above adjustments
-----------------------------------------
Nominal FFO 138 38 4 (31) 96
=========================================
Additional adjustments:
CPI and exchange rate linkage 83 120 81 72 133
differences
Loss from early redemption of 2 1 -- 1 6
interest-bearing liabilities
Depreciation and amortization 8 8 5 3 15
Adjustments with respect to companies 14 2 34 7 67
accounted for using the Equity
method
Other adjustments 1 27 15 14 43 88
-----------------------------------------
FFO according to the management 272 184 138 95 405
approach
=========================================
Basic and diluted FFO according to 1.65 1.19 0.84 0.61 2.62
the management approach per share
(in NIS)
=========================================
(*) Retroactively adjusted due to the implementation of new IFRSs; for details
refer to notes 2.b, 2.c and 6 of the financial statements.
(**) Represents an amount of less than NIS 1 million.
1 Income and expenses adjusted against the net income for the purpose of
calculating FFO, which include the adjustment of income from the waiver of the
bonus and the compensation with respect to the expiration of the employment
agreement of the Chairman of the Board of Directors, expenses and income from
exceptional legal proceedings not related to the reporting periods, expenses
arising from termination of the engagement of senior Group employees and also
income and expenses from operations not related to income-producing property.
CONTACT: Gazit-Globe Ltd.
1 HaShalom Rd.
Tel Aviv, Israel 67892
+972 3 694 8000
For additional information:
Gadi Cunia,
Senior Executive VP and CFO
News Source: NASDAQ OMX
21.08.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Gazit-Globe
Panama
Phone:
Fax:
E-mail:
Internet:
ISIN: PAL0605071A3
WKN:
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