DGAP-News: Gazit-Globe Reports Second Quarter 2013 Financial Results
(firmenpresse) - Gazit-Globe
27.08.2013 09:21
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Same Store NOI Grew by 3.5%, Occupancy Rate Remained High at 94.5%
The Group's Liquidity Reached a Level of NIS 9.7 Billion
TEL-AVIV, Israel, Aug. 27, 2013 (GLOBE NEWSWIRE) -- Gazit-Globe (TASE:GZT)
(NYSE:GZT), one of the world's leading multi-national real estate companies
focused on acquisition, development and redevelopment of supermarket-anchored
shopping centers in major urban markets, announced today its financial results
for the second quarter of 2013.
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 totaled NIS 865 million (U.S.$ 239 million), similar to
the same quarter last year
-- FFO for the quarter increased by 3% to NIS 142 million (U.S.$ 39 million),
or NIS 0.85 per share (U.S.$ 0.23), compared to NIS 138 million (U.S.$ 38
million), or NIS 0.84 per share (U.S.$ 0.23), in the same quarter last year
-- Acquisition and development of investment property during the quarter
totaled NIS 862 million (U.S.$ 238 million). The group recycled capital
from the divestitures of non-core properties in the amount of NIS 1.0
billion (U.S.$ 280 million)
-- Same Property NOI for the first half of 2013 grew by 3.5%, compared to same
period last year
-- Occupancy rate as of June 30, 2013 was 94.5%, compared to 95.0% as of
December 31, 2012 and 94.5% as of June 30, 2012
-- Shareholders' equity as of June 30, 2013 totaled NIS 7,988 million (U.S.$
2,208 million), or NIS 45.4 per share (U.S.$ 12.55), compared to NIS 7,849
million (U.S.$ 2,169 million), or NIS 47.5 per share (U.S.$ 13.13), as of
December 31, 2012, and to NIS 7,906 million (U.S.$ 2,185 million), or NIS
48.0 per share (U.S.$ 13.27), as of June 30, 2012.
-- EPRA NAV per share as of June 30, 2013 was NIS 52.3 (U.S.$ 14.46) compared
to NIS 56.9per share (U.S.$ 15.73) as of December 31, 2012, and to NIS 56.2
(U.S.$ 15.53) as of June 30, 2012
-- As of June 30, 2013, the Group had cash on hand and unutilized revolving
credit facilities in the amount of NIS 9.7 billion (U.S.$ 2.7 billion) of
which NIS 3.0 billion (U.S.$ 0.83 billion) is at the Company level
-- In the first half of 2013 the group issued NIS 1.0 billion of equity, and
NIS 6.7 billion of debentures and convertible debentures with an average
duration of approximately 8 years
-- As of June 30, 2013, net debt to total assets (LTV) was 55.0%, compared to
56.1% as of December 31, 2012, and to 57.5% as of June 30, 2012
-- During the quarter, the credit agency S&P Maalot upgraded Gazit-Globe's
domestic credit rating from ilA+ to ilAA- with a stable outlook
-- The Company's Board of Directors declared a quarterly cash dividend of NIS
0.43 per share (U.S.$ 0.12) payable on October 9th, 2013 to shareholders of
record as of September 24th, 2013, which represents an annualized projected
dividend per share of NIS 1.72 (U.S.$ 0.48)
Roni Soffer, President of Gazit-Globe: 'We have concluded another positive
quarter with solid FFO. The Israeli Shekel's appreciation against other
currencies had a major effect on our quarterly results, and by adjusting for
this effect, our FFO growth rate was higher.
'During the period, we continued to enhance the quality of our portfolio,
increase available liquidity, reduce our leverage and strengthen our balance
sheet. In addition, we took advantage of the low interest rate environment
through significant long-term debt issuances, resulting in longer duration and
a lower average cost of debt. Our group is well positioned today to take
advantage of growth opportunities in the global real estate market,' concluded
Mr. Soffer.
Financial Highlights for the second quarter 2013:
-- Rental income grew by 1% to NIS 1,286 million, compared to NIS 1,268
million in the same quarter last year
-- NOI for the quarter totaled NIS 865 million similar to the same quarter
last year
-- FFO for the quarter increased by 3% to NIS 142 million, or NIS 0.85 per
share, compared to NIS 138 million, or NIS 0.84 per share, in the same
quarter last year
-- Net income attributable to the Company's shareholders totaled NIS 60
million, or NIS 0.33 per share, compared to NIS 288 million, or NIS 1.70
per share, in the same quarter last year. The decrease in Net Income is
mainly a result of a lower fair value gain from investment property and
investment property under development, compared with the gain in the second
quarter of 2012, as well as of non-recurring items such as the cost of
unwinding of derivatives for the purpose of refinancing
-- Cash flow from operating activities totaled NIS 87 million, compared to NIS
283 million in the same quarter last year. The decrease resulted mainly
from non-recurring items such as the cost of unwinding of derivatives for
the purpose of refinancing, and timing difference of account receivables
and payables
-- Occupancy rate as of June 30, 2013 was 94.5%, compared to 95.0% as of
December 31, 2012 and 94.5% as June 30, 2012. Occupancy rate as of June 30,
2013 was 93.6% in North America, 95.9% in Europe and 98.5% in Israel
-- The fair value gain from investment property and investment property under
development was NIS 214 million compared to NIS 718 million in the same
quarter last year
-- Shareholders' equity as of June 30, 2013 totaled NIS 7,988 million, or NIS
45.4 per share, compared to NIS 7,849 million, or NIS 47.5 per share, as of
December 31, 2012, and to NIS 7,906 million, or NIS 48.0 per share, as of
June 30, 2012. The increase in shareholders' equity was mainly driven by a
NIS 0.5 billion equity issuance, and was negatively effected by the
appreciation of the NIS against the U.S. dollar, the Canadian Dollar and
the Euro
Financial Highlights for the first half of 2013:
-- Rental income increased by 4% and totaled NIS 2,626 million, compared to
NIS 2,527 million in the same period of 2012
-- NOI for increased by 3% and totaled NIS 1,748 million, compared to NIS
1,705 million in the same period last year
-- Same Property NOI for the first half of 2013 grew by 3.5%, resulting from
an increase of 3.3% in the same-property NOI from North America, a 3.8%
increase in same-property NOI from Europe and a 2.7% increase in
same-property NOI from Israel
-- FFO increased by 7% to NIS 291 million, or NIS 1.75 per share, compared to
NIS 272 million, or NIS 1.65 per share, in the same period last year
-- Net income attributable to the Company's shareholders totaled NIS 405
million, or NIS 2.41 per share, compared to NIS 546 million, or NIS 3.24
per share, in the same period last year. The decrease in Net Income is
mainly a result of a lower fair value gain from investment property and
investment property under development, compared with the gain in the first
half of 2012, as well as of non-recurring items such as the cost of
unwinding of derivatives for the purpose of refinancing
-- Cash flow from operating activities totaled NIS 159 million, compared to
NIS 395 million in the same period of 2012. The decrease resulted mainly
from non-recurring items such as unwinding of derivatives for the purpose
of refinancing, and timing difference of account receivables and payables
Acquisition, Development and Redevelopment Activities:
-- During the first half of 2013, the Group invested a total of NIS 1.5
billion including NIS 664 million for the acquisition of 4 income-producing
properties totaling 36 thousand square meters and adjacent land parcels for
future development, and NIS 826 million in development, redevelopment and
expansion projects
-- In addition, Citycon completed the acquisition of the Kista Galleria
shopping center in Stockholm, Sweden, together with a JV partner (50%) for
approximately EUR 530 million
-- During the first half of 2013, the Group sold non-core assets for a total
of NIS 1.6 billion
-- As of June 30, 2013, the Group had 10 properties under development with a
gross leasable area of 210 thousand square meters and 31 properties under
redevelopment with a gross leasable area of 187 thousand square meters with
a total investment of NIS 2,955 million. The additional cost to complete
the properties under development and redevelopment totals NIS 1,438 million
Financing Activities:
-- During the quarter, the Group raised NIS 524 million in equity, out of
which, NIS 0.5 billion was raised at the company level. In addition, the
group raised approximately NIS 5.6 billion in debentures and convertible
debentures
-- The average annual nominal interest rate during the first half of 2013 was
4.9%, compared to 5.2% during the same period of 2012
-- During the quarter, the credit agency S&P Maalot upgraded Gazit-Globe's
domestic credit rating from ilA+ to ilAA- with a stable outlook
-- During the quarter, Citycon received an investment grade credit rating from
S&P (BBB-) and Moody's (Baa3) with a stable outlook
ACCOUNTING AND OTHER DISCLOSURES
The Company believes that publication of FFO, which is computed according to
EPRA guidance, more correctly reflects the operating results of the Company,
since the Company's financial statements are prepared in line with IFRS. In
addition, publication of FFO provides a better basis for the comparison of the
Company's operating results in a particular period with those of previous
periods and also provides a uniform financial measure for comparing the
Company's operating results with those published by other European property
companies.
In addition, pursuant to the investment property guideline issued by the Israel
Securities Authority in January 2011, FFO is to be presented in the
'Description of the Company's Business' section of the annual report of
investment property companies on the basis of the EPRA criteria.
As clarified in the EPRA and NAREIT position papers, the EPRA Earnings and the
FFO measures do not represent cash flows from operating activities 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. Furthermore, it is clarified that these measures are not
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 27, 2013 at 5:00 pm Israel Time/ 3:00 pm UK Time/ 10:00 am Eastern
Time,to review the second quarter 2013 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. (Conference ID: 17608711)
For those unable to participate during the call, a replay will be available for
future review on Gazit-Globe's website under Investor Relations.
About Gazit-Globe
Gazit-Globe is one of the world's largest owners and operators of
supermarket-anchored shopping centers in major urban markets. In addition, the
Company is active in North America in the healthcare real estate sector.
Gazit-Globe is listed on the New York Stock Exchange (NYSE:GZT) and the Tel
Aviv Stock Exchange (TASE:GZT) and is included in the TA-25 and Real-Estate 15
indices in Israel. Gazit Globe owns and operates 592 properties in more than 20
countries, with a gross leasable area of approximately 6.7 million square
meters and a total value of more than $20 billion.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company's annual report is available on Gazit-Globe
website at www.gazit-globe.com
Investors Contact: IR(at)gazitgroup.com, Media Contact: press(at)gazitgroup.com
Gazit-Globe Headquarters, Tel-Aviv, Israel, Tel: +972 3 694 8000 / New York
Office, Tel: +1 212 897 9741
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.
Below please find excerpts from our quarterly Report. For our full second
quarter 2013 Financial Report in English, please go to
http://www.gazitglobe.com/financial-reports.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
--------------------------------------------------------------------------------
-
June 30, December
31,
----------------
2013 2012 2012
----------------------------
NIS in millions
----------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 1,309 1,442 1,683
Short-term investments and loans 670 385 538
Marketable securities at fair value through profit 157 62 87
or loss
Available-for-sale securities 8 18 14
Financial derivatives 109 78 81
Trade receivables 797 730 744
Other accounts receivable 302 284 216
Inventory of buildings and apartments for sale 647 645 712
Income taxes receivable 16 21 15
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4,015 3,665 4,090Assets classified as held for sale 455 636 1,482
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4,470 4,301 5,572
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NON-CURRENT ASSETS
Equity-accounted investees 5,208 4,808 4,713
Other investments, loans and receivables 908 442 713
Available-for-sale financial assets 364 357 339
Financial derivatives 1,134 883 929
Investment property 53,815 54,080 55,465
Investment property under development 2,296 3,063 2,806
Non-current inventory 23 23 23
Fixed assets, net 198 163 187
Goodwill 95 103 100
Other intangible assets, net 14 43 17
Deferred taxes 177 199 198
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64,232 64,164 65,490
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68,702 68,465 71,062
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
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-
June 30, December
31,
-----------------
2013 2012 2012
----------------------------
NIS in millions
----------------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 362 289 351
Current maturities of non-current liabilities 2,139 2,906 2,382
Financial derivatives 23 25 12
Trade payables 896 785 914
Other accounts payable 1,176 1,236 1,256
Advances from customers and buyers of apartments 274 225 257
Income taxes payable 37 30 52
----------------------------4,907 5,496 5,224
Liabilities attributed to assets held for sale 5 83 168
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4,912 5,579 5,392
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NON-CURRENT LIABILITIES
Debentures 22,039 17,258 18,500
Convertible debentures 1,289 1,602 1,197
Interest-bearing loans from financial institutions 14,237 19,487 19,433
and others
Financial derivatives 192 385 472
Other financial liabilities 191 312 346
Employee benefit liability, net 6 7 7
Deferred taxes 3,061 2,805 3,066
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41,015 41,856 43,021
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EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY
Share capital 229 218 219
Share premium 4,289 3,791 3,805
Retained earnings 4,957 4,318 4,699
Foreign currency translation reserve (1,621) (557) (913)
Other reserves 155 157 60
Loans granted to purchase shares of the Company *) -- -- --
Treasury shares (21) (21) (21)
----------------------------
7,988 7,906 7,849
Non-controlling interests 14,787 13,124 14,800
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Total equity 22,775 21,030 22,649
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68,702 68,465 71,062
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*) Represents an amount of less than NIS 1 million.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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Six months ended Three months Year ended
June 30, ended December 31,
June 30,
-----------------------------------
2013 2012 2013 2012 2012
------------------------------------------------NIS in millions (except per share amounts)
------------------------------------------------
Rental income 2,626 2,527 1,286 1,268 5,249
Property operating expenses 878 822 421 403 1,705
------------------------------------------------
Net operating rental income 1,748 1,705 865 865 3,544
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Revenues from sale of 948 932 521 456 1,749
buildings, land and
construction works performed
Cost of buildings sold, land 877 885 481 430 1,665
and construction works
performed
------------------------------------------------
Gross profit from sale of 71 47 40 26 84
buildings, land and
construction works performed
------------------------------------------------
Gross profit 1,819 1,752 905 891 3,628
Fair value gain from investment 391 1,031 214 718 1,913
property and investment
property under development,
net
General and administrative (293) (327) (146) (165) (648)
expenses
Other income 7 125 2 35 164
Other expenses (54) (17) (37) (12) (47)
Company's share in earnings of 105 154 47 74 299
equity accounted investees,
net
------------------------------------------------
Operating income 1,975 2,718 985 1,541 5,309
Finance expenses (1,153) (1,097) (676) (591) (2,214)
Finance income 304 45 91 19 120
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Profit before taxes on income 1,126 1,666 400 969 3,215
Taxes on income 127 343 53 211 681
------------------------------------------------
Net income 999 1,323 347 758 2,534
================================================Attributable to:
Equity holders of the Company 405 546 60 288 957
Non-controlling interests 594 777 287 470 1,577
------------------------------------------------
999 1,323 347 758 2,534
================================================
Net earnings per share
attributable to equity holders
of the Company (NIS):
Basic net earnings 2.43 3.31 0.35 1.74 5.80
================================================
Diluted net earnings 2.41 3.24 0.33 1.70 5.59
================================================
FFO (EPRA Earnings)
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-
The table below presents the calculation of the Company's FFO, computed
according to the directives of EPRA and the guidelines of the Israel Securities
Authority, and its FFO per share for the stated periods:
For the 6 months For the 3 months For the
ended ended year
June 30 June 30 ended
Decembe
r 31
--------------------------------------------
2013 2012 2013 2012 2012
--------------------------------------------
NIS in millions (other than per share data)
--------------------------------------------------------------------------------
Net income attributable to equity 405 546 60 288 957
holders of the Company for the
period
--------------------------------------------
Adjustments:
Fair value gain from investment (391) (1,031) (214) (718) (1,913)
property and investment property
under development, net
Capital loss on sale of investment 40 13 24 10 5
property and investment property
under development
Changes in the fair value of (247) 35 (57) 13 (36)
financial instruments including
derivatives, measured at fair
value through profit or loss
Adjustments with respect to 4 (47) 6 (48) (43)
equity-accounted investees
Loss from decrease in interest in 10 1 10 -- 4
investees
Deferred taxes and current taxes 111 333 47 206 668
with respect to disposal of
properties
Gain from bargain purchase -- (119) -- (37) (134)
Acquisition costs recognized in 3 6 -- 3 26
profit or loss
Loss from early redemption of 144 2 141 -- 147
interest-bearing liabilities and
financial derivatives
Non-controlling interests' share in 107 401 45 287 685
above adjustments
--------------------------------------------
Nominal FFO 186 140 62 4 366
============================================
Additional adjustments:
CPI and exchange rates linkage 56 83 53 81 94
differences
Depreciation and amortization 8 8 4 5 16
Adjustments with respect to 19 14 8 34 2
equity-accounted investees
Other adjustments1 22 27 15 14 55
--------------------------------------------
FFO according to the management 291 272 142 138 533
approach
============================================
Basic FFO according to the 1.75 1.65 0.85 0.84 3.23
management approach per share (in
NIS)
============================================
Diluted FFO according to the 1.75 1.65 0.85 0.84 3.23
management approach per share (in
NIS)
============================================
Number of shares used in the basic 166,315 164,831 167,296 164,840 164,912
FFO calculation2 (in thousands)
============================================
Number of shares used in the 166,549 165,099 167,544 165,124 165,016
diluted FFO calculation (in
thousands)
============================================
1 Income and expenses adjusted against the net income for the purpose of
calculating FFO, which include expenses from extra-ordinary legal proceedings
not related to the reporting periods, expenses arising from one-time payments
relating to the termination of engagements with senior Group officers and also
income and expenses from operations not related to income-producing property.
2 Number of issued shares (weighted average for the period)
CONTACT: Gazit-Globe Ltd.
1 HaShalom Rd.
Tel Aviv, Israel 67892
+972 3 694 8000
For additional information:
Gil Kotler,
Senior Executive VP and CFO
News Source: NASDAQ OMX
27.08.2013 Dissemination of a Corporate News, transmitted by DGAP -
a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Gazit-Globe
Panama
Phone:
Fax:
E-mail:
Internet:
ISIN: PAL0605071A3
WKN:
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