Gazit-Globe Reports Third Quarter 2015 Financial Results
(Thomson Reuters ONE) -
TEL-AVIV, Israel, Nov. 30, 2015 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:GZT)
(TSX:GZT) (TASE:GZT), one of the world's leading multi-national real estate
companies focused on the management, acquisition, development and redevelopment
of supermarket-anchored shopping centers in major urban markets, announced today
its financial results for the third quarter ended September 30, 2015.
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 27% to NIS 1,066 million (US$ 272 million)
compared to NIS 840 million (US$ 214 million) in the same quarter last year.
The increase is mainly due to the consolidation of Atrium's financial
reports and the acquisition of Sektor.
* FFO for the quarter increased by 5% to NIS 158 million (US$ 40 million), or
NIS 0.89 per share (US$ 0.23), compared to NIS 150 million (US$ 38 million),
or NIS 0.85 per share (US$ 0.22), in same quarter last year. Excluding the
effect of exchange rates fluctuations the FFO for the quarter increased by
21% and FFO per share increased by 19%.
* Investments during the quarter totaled NIS 6.8 billion (US$ 1.73 billion)
and included the acquisition of Sektor, Norway's second largest commercial
real estate company, for consideration amounting to approximately EUR 1.5
billion; the amount was paid both in cash (approximately EUR 571 million)
and assumption of debt.
* Same Property NOI for the first 9 months, excluding the effect of exchange
rates fluctuations, decreased by 0.5% (increase of 2.7% excluding Russia),
compared to same period last year. The occupancy rate as of September
30, 2015 remained high at a level of 95.5% compare to 95.6% as of September
30, 2014.
* Shareholders' equity as of September 30, 2015 totaled NIS 7,123 million (US$
1,816 million), or NIS 39.9 per share (US$ 10.2 per share), compared to NIS
7,853 million (US$ 2,002 million), or NIS 44.6 per share (US$ 11.4 per
share), as of September 30, 2014. The decrease in shareholders' equity was
mainly due to exchange rates fluctuations.
* EPRA NAV per share as of September 30, 2015 was NIS 55.6 (US$ 14.2) compared
to NIS 58.3 per share (US$ 14.9) as of September 30, 2014.
* As of September 30, 2015, the Group had liquid assets and unutilized
revolving credit facilities in the amount of NIS 11.0 billion (US$ 2.8
billion) of which NIS 3.2 billion (US$ 0.82 billion) at the Company level.
* As of September 30, 2015, net debt to total assets (LTV) was 51.6%, compared
to 51.5% as of September 30, 2014.
* The Company declared a quarterly cash dividend of NIS 0.46 per share payable
on December 29, 2015 to shareholders of record as of December 15, 2015,
which represents an annualized dividend per share of NIS 1.84.
Rachel Lavine, CEO of Gazit-Globe: "We conclude a very positive quarter with
growth in both FFO and FFO per share, as well as an improvement in our
operational parameters."
Lavine added: "After examining the various strategic opportunities available to
the Company, I am very positive about our business prospects and believe that
together with the management team, Gazit-Globe will move forward, further
developing its business and extracting more value from its operations. "
Financial highlights for third quarter 2015:
* Rental income increased by 29% to NIS 1,547 million compared to NIS 1,201
million in the same quarter last year. The increase is mainly due to the
consolidation of Atrium's financial reports and the acquisition of Sektor.
* NOI for the quarter increased by 27% to NIS 1,066 million compared to NIS
840 million in the same quarter last year. The increase is mainly due to the
consolidation of Atrium's financial reports and the acquisition of Sektor.
* FFO for the quarter increased by 5% to NIS 158 million, or NIS 0.89 per
share, compared to NIS 150 million, or NIS 0.85 per share, in same quarter
last year. Excluding the effect of exchange rates fluctuations the FFO for
the quarter increased by 21% and FFO per share increased by 19%
* Loss attributable to the Company's shareholders totaled NIS 92 million, or
NIS 0.52 per share, compared to a loss of NIS 13 million, or NIS 0.08 per
share, in the same quarter last year. The loss was mainly attributable to
non-recurring items relating to the re-organization in FCR, transaction
costs in CTY, mortgage prepayment penalty in ProMed , and losses relating to
the construction activity in Dori construction.
* Occupancy rate as of September 30, 2015 remained high at 95.5% compare to
95.6% as of September 30, 2014. By region, occupancy rate as of September
30, 2015 were: 94.7% in Canada; 95.6% in the US; 96.7% in North Europe; and
96.3% in Central and Eastern Europe.
* The net fair value of investment property and investment property under
development remained stable compared to a gain of NIS 88 million in the same
quarter last year.
* Shareholders' equity as of September 30, 2015 totaled NIS 7,123 million, or
NIS 39.9 per share, compared to NIS 7,853 million, or NIS 44.6 per share, as
of September 30, 2014.The decrease in shareholders' equity was mainly due to
exchange rates fluctuations.
* Cash flow from operating activities totaled NIS 673 million, compared to NIS
265 million in the third quarter 2014. The increase is mainly due to the
consolidation of Atrium's financial reports and the acquisition of Sektor.
Financial highlights for the first nine-months of 2015:
* Rental income increased by 26% to NIS 4,588 million compared to NIS 3,654
million in the same period of 2014. The increase is mainly due to the
consolidation of Atrium's financial reports and the acquisition of Sektor.
* NOI increased by 26% to NIS 3,137 million compared to NIS 2,489 million in
the same period of 2014. The increase was mainly results from the
consolidation of Atrium's financial reports and the acquisition of Sektor.
* Same Property NOI for the first 9 months, excluding the effect of exchange
rate fluctuations, decreased by 0.5%, compared to same period last year as a
result of an increase of 5.1% in the same-property NOI from Canada, a 4.1%
increase in same-property NOI from the US, a 0.6% increase in same-property
NOI from Northern Europe and a 12.0% decrease in same-property NOI from
Central and Eastern Europe.
* FFO for the period increased by 4% to NIS 481 million, or NIS 2.69 per
share, compared to NIS 463 million, or NIS 2.63 per share, in the same
period of 2014. Excluding the effect of exchange rates fluctuations the FFO
for the period increased by 13% and FFO per share increased by 11%.
* Net income attributable to the Company's shareholders totaled NIS 414
million, or NIS 2.30 per share, compared to NIS 290 million, or NIS 1.63 per
share, in the same period of 2014.
* Cash flow from operating activities totaled NIS 1,170 million, compared to
NIS 722 million in the same period of 2014. The increase is mainly due to
the consolidation of Atrium's financial reports and the acquisition of
Sektor.
Acquisition, Development, Redevelopment and Capital Recycling Activities:
* During the first nine-months of 2015, the Group invested NIS 8.55 billion
(including the acquisition of Sektor) which included 26 income-producing
property totaling 478 thousand square meters for a total amount of NIS 7.02
billion as well as NIS 1.53 billion in development and redevelopment
projects.
* As of September 30, 2015, the Group had 8 properties under development with
a gross leasable area of 191 thousand square meters with a total investment
of NIS 2.3 billion, and 20 properties under redevelopment with a gross
leasable area of 335 thousand square meters with a total investment of NIS
4.2 billion. The additional cost to complete the properties under
development and redevelopment totaled NIS 2.3 billion.
* Subsequent to the quarter end, the Company announced that it has reached a
5% stake in BR Malls, the Leading Brazilian Shopping Center Company.
* Subsequent to the quarter end, the Company entered into an agreement with
Gazit Israel; providing credit facility in the amount of up to NIS 120
million for a period of 30 months, which will be provided to Dori Group and
will be used to purchase the shares of "Rom Geves", a private company owned
by Dori Construction as well as for general corporate purposes including
Dori Group bonds buy-back.
Financing Activities:
* During the first nine-months of 2015, the Group raised NIS 2.3 billion in
equity. In addition, the Group raised approximately NIS 5.6 billion through
debenture offerings.
* The average nominal annual cost of debt during the first nine-months of
2015 was 4.3%, compared to 4.7% in the first nine-months of 2014.
* The Company declared a quarterly cash dividend of NIS 0.46 per share payable
on December 29, 2015 to shareholders of record as of December 15, 2015;
representing an annualized dividend per share of NIS 1.84.
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 Monday,
November 30, 2015 at 5:00 pm Israel Time / 4:00 pm Central European Time /
10:00 am Eastern Time, to review the third quarter 2015 financial results.
Shareholders, analysts and other interested parties can access the conference
call by dialing 1877 280 2342 (U.S./Canada) or 0800 279 4992 (U.K.) or +44 (0)
20 3427 1909 (International) or 1809 212 925 (Israel), or on the Company's
website www.gazit-globe.com. (Conference ID 5340496)
Website link: http://edge.media-server.com/m/p/ttkyaij3
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 largest owners, developers and operators of
predominantly supermarket-anchored shopping centers in major urban markets
around the world. Gazit-Globe is listed on the New York Stock Exchange
(NYSE:GZT), the Toronto Stock Exchange (TSX:GZT) and the Tel Aviv Stock Exchange
(TASE:GZT) and is included in the TA-25 and Real-Estate 15 indices in Israel. As
of September 30, 2015 Gazit-Globe owns and operates 458 properties in more than
20 countries, with a gross leasable area of approximately 6.6 million square
meters and a total value of approximately US$ 21 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 6948000
FORWARD LOOKING STATEMENTS
This release may contain forward-looking statements within the meaning of
applicable securities laws. In the United States, 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 and the
Canadian Securities Administrators. Except as required by applicable 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 Q3 2015 financial report. For our full Q3
2015 report in English, please go to http://www.gazitglobe.com/financial-
reports.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, December 31,
2015 2014 2014
Unaudited Audited
NIS in millions
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,717 1,993 650
Short-term deposits and loans 234 376 368
Marketable securities 35 112 299
Financial derivatives 159 23 90
Trade receivables 534 584 536
Other accounts receivable 501 315 303
Inventory of buildings and apartments for sale 518 657 588
Income taxes receivable 24 56 14
3,722 4,116 2,848
Assets classified as held for sale 596 1,404 1,046
4,318 5,520 3,894
NON-CURRENT ASSETS
Equity-accounted investees 2,962 6,130 6,213
Other investments, loans and receivables 742 512 564
Available-for-sale financial assets 596 647 383
Financial derivatives 669 745 288
Investment property 71,399 53,310 56,646
Investment property under development 3,055 2,468 1,642
Non-current inventory 2 4 2
Fixed assets, net 262 162 171
Intangible assets, net 904 103 103
Deferred taxes 127 98 78
80,718 64,179 66,090
85,036 69,699 69,984
September 30, December 31,
2015 2014 2014
Unaudited Audited
NIS in millions
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 888 383 553
Current maturities of non-current liabilities 2,501 2,851 2,711
Financial derivatives 87 61 59
Trade payables 816 849 900
Other accounts payable 1,735 1,306 1,262
Advances from customers and buyers of apartments 294 281 304
Income taxes payable 152 118 74
6,473 5,849 5,863
Liabilities attributed to assets held for sale 3 72 110
6,476 5,921 5,973
NON-CURRENT LIABILITIES
Debentures 30,949 23,287 24,433
Convertible debentures 959 1,238 1,254
Interest-bearing loans from financial 10,533 10,476 8,552
institutions and others
Financial derivatives 186 83 94
Other liabilities 437 179 190
Deferred taxes 4,885 3,471 3,618
47,949 38,734 38,141
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY
Share capital 232 229 232
Share premium 4,413 4,297 4,411
Retained earnings 5,083 5,213 4,915
Foreign currency translation reserve (2,663) (1,974) (1,641)
Other reserves 79 109 127
Loans to purchase shares - (*- (*-
Treasury shares (21) (21) (21)
7,123 7,853 8,023
Non-controlling interests 23,488 17,191 17,847
Total equity 30,611 25,044 25,870
85,036 69,699 69,984
*) Represents an amount of less than NIS 1 million.
CONSOLIDATED STATEMENTS OF INCOME
Nine months Three months Year ended
ended ended December 31,
September 30, September 30,
2015 2014 2015 2014 2014
Unaudited Audited
NIS in millions (except for per share data)
Rental income 4,588 3,654 1,547 1,201 4,913
Property operating expenses 1,451 1,165 481 361 1,584
Net operating rental income 3,137 2,489 1,066 840 3,329
Revenues from sale of buildings,
land and construction work 940 1,014 278 411 1,357
performed
Cost of buildings sold, land and 1,022 1,278 328 427 1,660
construction work performed
Gross loss from sale of
buildings, land and construction (82) (264) (50) (16) (303)
work performed
Total gross profit 3,055 2,225 1,016 824 3,026
Fair value gain from investment
property and investment property 480 354 -- 88 1,053
under development, net
General and administrative (608) (442) (230) (146) (619)
expenses
Other income 22 8 15 3 55
Other expenses (630) (49) (126) (28) (81)
Company's share in earnings of 120 199 37 87 12
equity-accounted investees, net
Operating income 2,439 2,295 712 828 3,446
Finance expenses (1,427) (1,483) (554) (591) (2,115)
Finance income 724 254 31 30 157
Income before taxes on income 1,736 1,066 189 267 1,488
Taxes on income (tax benefit) 110 252 (13) 66 405
Net income 1,626 814 202 201 1,083
Attributable to:
Equity holders of the Company 414 290 (92) (13) 73
Non-controlling interests 1,212 524 294 214 1,010
1,626 814 202 201 1,083
Net earnings (loss) per share
attributable to equity holders
of the Company:
Basic net earnings (loss) 2.32 1.65 (0.52) (0.08) 0.41
Diluted net earnings (loss) 2.30 1.63 (0.52) (0.08) 0.39
FFO (EPRA Earnings)
For the year
For the 9 months For the 3 months ended
ended ended September December 31
September 30, 30,
2015 2014 2015 2014 2014
NIS in millions (other than per share data)
Net income (loss)
attributable to equity 414 290 (92) (13) 73
holders of the Company for
the period
Adjustments:
Fair value gain from
investment property and (480) (354) -- (88) (1,053)
investment property under
development, net
Capital loss on sale of 91 48 86 29 65
investment property
Changes in the fair value
of financial instruments,
including derivatives, (597) (156) 32 62 156
measured at fair value
through profit or loss
Adjustments with respect
to equity-accounted (13) 62 (5) (2) 324
investees
Loss from disposal
and decrease of holding 1,531 1 -- -- 1
interest in investees
Deferred taxes and current
taxes with respect to 74 245 (18) 47 399
disposal of properties
Gain from bargain purchase (1,065) -- (1) -- (47)
Acquisition costs
recognized in profit or 35 5 31 2 6
loss
Loss from early redemption
of interest-bearing 67 135 38 70 154
liabilities and financial
derivatives
Non-controlling interests' 264 (6) (24) (31) 267
share in above adjustments
Nominal FFO 321 270 47 76 345
Additional adjustments:
CPI linkage differences (20) 13 25 28 (5)
Depreciation and 16 11 6 3 13
amortization
Adjustments with respect
to equity-accounted -- (3) -- 13 (3)
investees
Other adjustments 164 172 80 30 248
FFO according to the 481 463 158 150 598
management approach
FFO according to the
management approach per 2.69 2.63 0.89 0.85 3.39
share (in NIS) basic and
diluted
Number of shares used in
the basic FFO per share 178,422 175,910 178,427 175,978 176,459
calculation (in thousands)
Number of shares used in
the diluted FFO per share 178,579 176,013 178,549 176,080 176,546
calculation (in thousands)
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Gazit-Globe via GlobeNewswire
[HUG#1970065]
Unternehmensinformation / Kurzprofil:
Datum: 30.11.2015 - 10:13 Uhr
Sprache: Deutsch
News-ID 436248
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