Gazit-Globe Reports First Quarter 2016 Financial Results
(Thomson Reuters ONE) -
TEL-AVIV, Israel, May 26, 2016 (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 first quarter ended March 31, 2016.
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 1,052 million (US$ 279 million) compared to
NIS 1,028 million (US$ 273 million) in the same quarter last year.
Excluding the effect of exchange rate fluctuations NOI increased by 7.9%
compared to the same quarter last year.
* FFO for the quarter totaled NIS 135 million (US$ 36 million), or NIS 0.69
per share (US$ 0.18), compared to NIS 160 million (US$ 42 million), or NIS
0.90 per share (US$ 0.24), in the same quarter last year. The decrease in
FFO and FFO per share between the two periods is mainly due to the effects
of exchange rates, the sale of shares in subsidiaries and the equity
offering that was completed at the end of 2015. Excluding the effect of
foreign exchange rate fluctuations, FFO for the quarter decreased by 5.6%
and FFO per share decreased by 14% compared to the same quarter last year.
* Same Property NOI for the quarter, excluding the effect of foreign exchange
rate fluctuations, increased by 0.3% (1.9% excluding Russia), compared to
the same quarter last year.
* The occupancy rate as of March 31, 2016 remained high at a level of 95.6%,
the same as the occupancy as of March 31, 2015.
* Investments during the quarter totaled NIS 997 million (US$ 265 million).
* Shareholders' equity as of March 31, 2016 totaled NIS 7,378 million (US$
1,959 million), or NIS 37.7 per share (US$ 10.0 per share), compared to NIS
7,512 million (US$ 1,995 million), or NIS 38.4 per share (US$ 10.2 per
share), as of December 31, 2015 and after a dividend distribution of NIS
0.46 per share (US$ 0.12).
* As of March 31, 2016, the Group had liquid assets and unutilized revolving
credit facilities in the amount of NIS 10.4 billion (US$ 2.8 billion), of
which NIS 3.1 billion (US$ 823 million) was at the Company level.
* As of March 31, 2016, net debt to total assets (LTV) was 50.8%, compared to
51.3% as of December 31, 2015.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share,
payable on June 16, 2016 to shareholders of record as of June 08, 2016.
Rachel Lavine, CEO of Gazit-Globe: "The improvement in the various operating
parameters is primarily due to the capital recycling activity that began more
than 6 years ago in our North American subsidiaries, Equity One and First
Capital, as this has been reflected more strongly in recent quarters. We believe
that the improvement process is similar to the capital recycling activity
currently under way in our subsidiaries in Europe, which have not yet been
reflected in their results. Our operating results were significantly offset by
the strengthening of the Shekel against the currencies of operations, coupled
with the sale of shares in our North American subsidiaries earlier this year, in
line with our strategy. We are committed to acting decisively and consistently
as we create the right infrastructure for the company's growth in the coming
years. Recently, we announced an increase in our holdings in Gazit Israel to
100% as we increase the Group's component of private real estate and simplify
the holding structure."
Financial highlights for first quarter 2016:
* Rental income for the quarter totaled NIS 1,539 million compared to NIS
1,527 million in the same quarter last year. Excluding the effect of
foreign exchange rate fluctuations, the rental income increased by 6.5%
compared to the same quarter last year.
* NOI for the quarter totaled NIS 1,052 million compared to NIS 1,028 million
in the same quarter last year. Excluding the effect of foreign exchange
rate fluctuations, NOI increased by 7.9% compared to the same quarter last
year.
* FFO for the quarter totaled NIS 135 million, or NIS 0.69 per share, compared
to NIS 160 million, or NIS 0.90 per share, in the same quarter last year.
The decrease in FFO and FFO per share between the two periods is mainly due
to the effects of foreign exchange rates, the sale of shares of subsidiaries
and equity offering that was completed at the end of 2015. Excluding the
effect of foreign exchange rate fluctuations, FFO for the quarter decreased
5.6% and FFO per share decreased by 14%.
* Occupancy rate as of March 31, 2016 remained high at 95.6%, the same as the
occupancy as of March 31, 2015. By region, occupancy rates as of March
31, 2016 were: 96.2% in the US; 95.0% in Canada; 96.2% in North Europe; and
95.8% in Central and Eastern Europe.
* EPRA NAV per share as of March 31, 2016 was NIS 52.4 compared to NIS 52.9
per share as of December 31, 2015.
* Loss attributable to the Company's shareholders totaled NIS 278 million
compared to a gain of NIS 376 million in the same quarter last year. The
loss is mainly due to the revaluation of financial derivatives (NIS 302
million), the net loss from the sale of shares of Dori Group and the
reduction in the value of the capital note (NIS 195 million).
* The net fair value of investment property and investment property under
development gain was NIS 249 million, compared to a gain of NIS 107 million
in the same quarter last year.
* Cash flow from operating activities totaled NIS 290 million, compared to NIS
175 million in the same quarter last year.
Acquisition, Development, Redevelopment and Capital Recycling Activities:
* During the quarter, the Group invested NIS 997 million. Total investment
included NIS 437 million invested in 4 income-producing property totaling
28 thousand square meters, as well as NIS 560 million in development and
redevelopment projects.
* As of March 31, 2016, the Group had 6 properties under development with a
gross leasable area of 111 thousand square meters with a total investment of
NIS 1.3 billion, and 21 properties under redevelopment with a gross leasable
area of 232 thousand square meters with a total investment of NIS 4.4
billion. The additional cost to complete the properties under development
and redevelopment totaled NIS 1.9 billion.
* During the quarter Gazit Globe Israel sold all Dori Group shares owned and
as a result of the sale, the Company realized a net loss of NIS 195 million.
* Subsequent to the end of the quarter, the company announced that it is
increasing its share in Gazit Israel (Development) to 100%, becoming the
sole shareholder in the company.
Financing Activities:
* The average nominal annual cost of debt during the quarter was 4.1%,
compared to 3.5% in the same quarter last year. The increase in nominal
interest is mainly due to a decrease in the CPI that was 0.9% versus a
decrease of 1.6% in the same quarter last year.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share,
payable on June 16, 2016 to shareholders of record as of June 08, 2016.
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 Thursday, May
26, 2016 at 5:00 pm Israel Time / 4:00 pm Central European Time / 10:00 am
Eastern Time, to review the first quarter 2016 financial results. Shareholders,
analysts and other interested parties can access the conference call by dialing
1877 280 1254 (U.S./Canada) or 0800 279 4992 (U.K.) or 44 (0) 20 3427 1908
(International) or 1 809 212 925 (Israel), or on the Company's
website: www.gazit-globe.com (Conference ID 8905824)
Webcast link: http://edge.media-server.com/m/p/4godqbnj
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 March 31, 2016 Gazit-Globe owns and operates 439 properties in more than 20
countries, with a gross leasable area of approximately 6.5 million square meters
and a total value of approximately US$ 21.5 billion.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company's financial 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 Q1 2016 financial report. For our full Q1
2016 report in English, please go to http://www.gazitglobe.com/financial-
reports.
The table below presents the calculation of the Company's FFO, calculated
according to the recommendations of EPRA and the guidelines of the Israel
Securities Authority, and its FFO per share for the stated periods:
For the 3 months For the year
ended
ended March 31, December 31
-----------------------------
2016 2015 2015
-------------- -------------- ---------------
NIS in millions (other than per share data)
---------------------------------------------
Net income (loss) attributable
to equity holders of the Company
for the period (278 ) 376 620
-------------- -------------- ---------------
Adjustments:
Fair value gain from investment
property and investment property
under development, net (249 ) (107 ) (711 )
Capital loss on sale of
investment property (1 ) 5 106
Changes in the fair value of
financial instruments, including
derivatives, measured at fair
value through profit or loss 526 (575 ) (693 )
Adjustments with respect to
equity-accounted investees (5 ) 12 (50 )
Loss from disposal of investee - 1,533 1,533
Deferred taxes and current taxes
with respect to disposal of
properties 89 41 138
Gain from bargain purchase, net
of goodwill amortization - (1,067 ) (1,026 )
Acquisition costs recognized in
profit or loss 1 1 41
Loss (gain) from early
redemption of interest-bearing
liabilities 29 (1 ) 78
Non-controlling interests' share
in above adjustments 65 42 395
-------------- -------------- ---------------
Nominal FFO (EPRA Earnings) 177 260 431
-------------- -------------- ---------------
Additional adjustments:
CPI linkage differences (71 ) (142 ) (77 )
Depreciation and amortization 4 5 21
Adjustments with respect to
equity-accounted investees - (3 ) -
Other adjustments(1) 25 40 252
-------------- -------------- ---------------
FFO according to the management
approach (Adjusted EPRA
Earnings) 135 160 627
-------------- -------------- ---------------
FFO according to the management
approach per share (basic and
diluted) (in NIS) 0.69 0.90 3.51
-------------- -------------- ---------------
Number of shares used in the
basic FFO per share calculation
(in thousands)(2) 195,476 178,414 178,426
-------------- -------------- ---------------
Number of shares used in the
diluted FFO per share
calculation (in thousands)(2) 195,566 178,507 178,601
-------------- -------------- ---------------
(1) Income and expenses adjusted against the net income for the purpose of
calculating FFO, which include the adjustment of expenses and income from
extraordinary legal proceedings not related to the Reporting Periods (including
a provision for legal proceedings), non-recurring expenses arising from the
termination of engagements with senior Group officers, as well as income and
expenses from operations not related to income-producing property (including the
results of Dori Group in comparable periods) and the cost of debt with respect
thereto, and non-recurring restructing expenses, and internal costs (mainly
salary) incurred in the leasing of properties.
(2 )Weighted average for the period.
GAZIT-GLOBE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
-------------------------------------------------------------------------------
March 31, December 31,
-----------------
2016 2015 2015
-------- -------- -------------
Unaudited Audited
----------------- -------------
NIS in millions
-------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 2,433 2,991 2,125
Short-term and loans 60 357 203
Marketable securities 42 45 38
Financial derivatives 50 128 77
Trade receivables 218 582 467
Other accounts receivable 401 389 363
Inventory of buildings and apartments for
sale - 583 522
Income taxes receivable 27 22 24
-------- -------- -------------
3,231 5,097 3,819
Assets classified as held for sale 513 303 826
-------- -------- -------------
3,744 5,400 4,645
-------- -------- -------------
NON-CURRENT ASSETS
Equity-accounted investees 2,665 2,196 2,996
Other investments, loans and receivables 743 709 754
Available-for-sale financial assets 889 373 771
Financial derivatives 341 720 702
Investment property 71,799 65,951 70,606
Investment property under development 2,666 3,119 2,587
Fixed assets, net 128 201 170
Intangible assets, net 915 100 900
Deferred taxes 39 87 105
-------- -------- -------------
80,185 73,456 79,591
-------- -------- -------------
83,929 78,856 84,236
-------- -------- -------------
GAZIT-GLOBE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
------------------------------------------------------------------------------
December
March 31, 31,
-------------------------
2016 2015 2015
------------ ------------ ------------
Unaudited Audited
------------------------- ------------
NIS in millions
--------------------------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 876 570 1,062
Current maturities of non-current
liabilities 2,228 2,618 2,279
Financial derivatives 40 55 45
Trade payables 500 812 833
Other accounts payable 1,717 1,597 1,521
Advances from customers and buyers of
apartments - 275 326
Income taxes payable 81 93 111
------------ ------------ ------------
5,442 6,020 6,177
Liabilities attributed to assets held
for sale 5 17 50
------------ ------------ ------------
5,447 6,037 6,227
------------ ------------ ------------
NON-CURRENT LIABILITIES
Debentures 29,043 27,931 29,480
Convertible debentures 603 1,162 921
Interest-bearing loans from banks and
others 12,064 9,428 11,457
Financial derivatives 133 95 93
Other liabilities 392 450 402
Deferred taxes 4,707 4,331 4,661
------------ ------------ ------------
46,942 43,397 47,014
------------ ------------ ------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE COMPANY
Share capital 249 232 249
Share premium 4,985 4,413 4,983
Retained earnings 4,839 5,209 5,207
Foreign currency translation reserve (2,936 ) (2,162 ) (3,103 )
Other reserves 262 171 197
Treasury shares (21 ) (21 ) (21 )
------------ ------------ ------------
7,378 7,842 7,512
Non-controlling interests 24,162 21,580 23,483
------------ ------------ ------------
Total equity 31,540 29,422 30,995
------------ ------------ ------------
83,929 78,856 84,236
------------ ------------ ------------
Year ended
Three months ended December
March 31, 31,
-----------------------
2016 2015 2015
----------- ----------- -----------
Unaudited Audited
----------------------- -----------
NIS in millions (except for per
share data)
-----------------------------------
Rental income 1,539 1,527 6,150
Property operating expenses 487 499 1,966
----------- ----------- -----------
Net operating rental income 1,052 1,028 4,184
Fair value gain from investment property
and investment property under development,
net 249 107 711
General and administrative expenses (175 ) (170 ) (726 )
Other income 9 4 31
Other expenses (18 ) (501 ) (795 )
Company's share in earnings of equity-
accounted investees, net 35 31 234
----------- ----------- -----------
Operating income 1,152 499 3,639
Finance expenses (723 ) (309 ) (1,831 )
Finance income 60 617 852
----------- ----------- -----------
Income before taxes on income 489 807 2,660
Taxes on income 101 63 166
----------- ----------- -----------
Net income from continuing operations 388 744 2,494
Loss from discontinued operation, net (230 ) (17 ) (188 )
----------- ----------- -----------
Net income 158 727 2,306
----------- ----------- -----------
Attributable to:
Equity holders of the Company (278 ) 376 620
Non-controlling interests 436 351 1,686
----------- ----------- -----------
158 727 2,306
----------- ----------- -----------
Net earnings (loss) per share attributable
to equity holders of the Company (NIS):
Basic net earnings (loss) from continuing
operations (0.42 ) 2.15 4.05
----------- ----------- -----------
Basic loss from discontinued operation (1.00 ) (0.04 ) (0.58 )
----------- ----------- -----------
Total basic net earnings (loss) (1.42 ) 2.11 3.47
-----------------------------------
Diluted net earnings (loss) from continuing
operations (0.44 ) 2.15 4.02
----------- ----------- -----------
Diluted loss from discontinued operation (1.00 ) (0.05 ) (0.57 )
----------- ----------- -----------
Total diluted net earnings (loss) (1.44 ) 2.10 3.45
-----------------------------------
For additional information:
Adi Jemini
CFO, Gazit-Globe
Gazit-Globe Ltd.
1 HaShalom Rd.
Tel Aviv, Israel 67892
+972 3 694 8000
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#2015782]
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Datum: 26.05.2016 - 12:07 Uhr
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News-ID 473891
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