Gazit-Globe Reports Second Quarter 2016 Financial Results
(Thomson Reuters ONE) -
Shareholders' equity grew by half a billion (NIS 2.6 per share) totaled NIS 7.9
billion, Investments during the quarter totaled NIS 1.1 billion
TEL-AVIV, Israel, Aug. 23, 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 second quarter ended June 30, 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 increased by 3.0% to NIS 1,074 million (US$ 279 million)
compared to NIS 1,043 million (US$ 271 million) in the same quarter last
year. Excluding the effect of exchange rate fluctuations NOI increased by
5.4% compared to the same quarter last year.
* FFO for the quarter totaled NIS 142 million (US$ 37 million), or NIS 0.72
per share (US$ 0.19), compared to NIS 135 million (US$ 35 million), or NIS
0.69 per share (US$ 0.18), in the first quarter of 2016 and NIS 162 million
(US$ 42 million), or NIS 0.91 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.
* Shareholders' equity as of June 30, 2016 increased during the quarter by
approximately NIS 0.5 billion (NIS 2.6 per share) totaled NIS 7,867 million
(US$ 2,046 million), or NIS 40.2 per share (US$ 10.45 per share), compared
to NIS 7,512 million (US$ 1,953 million), or NIS 38.4 million (US$ 9.98 per
share), as of December 31, 2015 and after a dividend distribution of NIS
0.81 per share (US$ 0.21) in the six months ended June 30, 2016.
* Investments during the quarter totaled NIS 1.1 billion (US$ 293 million).
* The occupancy rate as of June 30, 2016 increased to a level of 95.7%
compared to 95.4% as of June 30, 2015.
* Same Property NOI for the period, excluding the effect of foreign exchange
rate fluctuations, decreased by 0.1%. The decrease is mainly due to one-time
effect in Canada as well as a decrease in NOI in Russia.
* As of June 30, 2016, the Group had liquid assets and unutilized revolving
credit facilities in the amount of NIS 9.8 billion (US$ 2.55 billion), of
which NIS 2.3 billion (US$ 0.6 billion) was at the Company level.
* As of June 30, 2016, net debt to total assets (LTV) decreased by 50 basis
points to 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 September 12, 2016 to shareholders record as of September
5, 2016.
* During the quarter and thereafter Gazit-Globe disposed part of its shares in
BR Malls, which resulted in a total realized and unrealized gain of more
than NIS 130 million (US$ 34 million).
* In August 2016, the local credit agency, S&P Maalot, re-affirmed Gazit-
Globe's local credit rating of ilAA-.
Rachel Lavine, CEO of Gazit-Globe: "The second quarter results clearly show the
continuation of the positive trends as evident through a significant increase in
shareholders' equity, strengthening of our balance sheet, decrease of our cost
of debt, and the improvement in our financial ratios. The Company's financial
strength has recently been reinforced by the re-affirmation of our local credit
rating by S&P Maalot.
Alongside of more than NIS 130 million gain from the investment in BR Malls, we
continue to bear fruit as a result of our portfolio repositioning; We believe
that our portfolio is exceptional due to its high quality as well as its
geographical diversity in strong economies and their leading urban cities. The
Company focuses its activity on the acquisition, development and redevelopment
of prime assets which amount to approximately NIS 3.7 billion, with a cost to
complete of approximately NIS 2 billion. We believe that these quality
properties, located in leading cities around the world such as Toronto, San
Francisco, Sau Paulo, Helsinki and Warsaw will yield over the coming quarters,
and in particularly during the course of 2017."
Financial highlights for second quarter 2016:
* Rental income for the quarter totaled NIS 1,523 million compared to NIS
1,514 million in the same quarter last year, an increase of 0.6%. Excluding
the effect of foreign exchange rate fluctuations, the rental income
increased by 3.0% compared to the same quarter last year.
* NOI for the quarter totaled NIS 1,074 million compared to NIS 1,043 million
in the same quarter last year an increase of 3.0%. Excluding the effect of
foreign exchange rate fluctuations, NOI increased by 5.4% compared to the
same quarter last year.
* FFO for the quarter totaled NIS 142 million, or NIS 0.72 per share, compared
to NIS 135 million, or NIS 0.69 per share, in the first quarter of 2016 and
NIS 162 million, or NIS 0.91 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 exchange rates, the sale of shares in subsidiaries and the
equity offering that was completed at the end of 2015.
* The occupancy rate as of June 30, 2016 increased to a level of 95.7%
compared to 95.4% as of June 30, 2015. By region, occupancy rates as of June
30, 2016 were: 96.3% in the US; 95.2% in Canada; 96.5% in North Europe; and
95.4% in Central and Eastern Europe.
* EPRA NAV per share as of June 30, 2016 was NIS 55.2 compared to NIS 52.9 per
share as of December 31, 2015.
* Net income attributable to the Company's shareholders totaled NIS 97
million, or NIS 0.47 per share, compared to NIS 130 million, or NIS 0.70 per
share, in the same quarter last year.
* The net fair value gain of investment property and investment property under
development was NIS 572 million, compared to a gain of NIS 373 million in
the same quarter last year.
* Cash flow from operating activities totaled NIS 313 million, compared to NIS
322 million in the same quarter last year.
Financial highlights for the first half 2016:
* Rental income for the period totaled NIS 3,062 million compared to NIS
3,041 million in the same period last year, an increase of 0.7%. Excluding
the effect of foreign exchange rate fluctuations, the rental income
increased by 4.8% compared to the same period last year.
* NOI for the period totaled NIS 2,126 million compared to NIS 2,071 million
in the same period last year an increase of 2.7%. Excluding the effect of
foreign exchange rate fluctuations, NOI increased by 6.6% compared to the
same period last year.
* FFO for the period totaled NIS 277 million, or NIS 1.42 per share, compared
to NIS 323 million, or NIS 1.81 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.
* Loss attributable to the Company's shareholders totaled NIS 181 million, or
NIS 0.96 per share, compared to net income of NIS 506 million, or NIS 2.81
per share, in the same period last year. The loss is mainly due to the
revaluation of financial derivatives and the loss from the sale of shares of
Luzon Group (previously: Dori Group) recognized in the first quarter of
2016.
* Cash flow from operating activities totaled NIS 603 million, compared to NIS
497 million in the same period last year.
Acquisition, Development, Redevelopment and Capital Recycling Activities:
* During the period, the Group invested NIS 2,122 million. Total investment
included NIS 783 million invested in 7 income-producing properties totaling
63 thousand square meters, as well as NIS 1,339 million in development and
redevelopment projects.
* As of June 30, 2016, the Group had 6 properties under development with a
gross leasable area of 111 thousand square meters with a total investment of
NIS 1.4 billion, and 21 properties under redevelopment with a gross leasable
area of 215 thousand square meters with a total investment of NIS 4.3
billion. The additional cost to complete the properties under development
and redevelopment totaled NIS 2.0 billion.
* During 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 period was 4.0%, compared
to 4.2% in the same period last year.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share,
payable on September 12, 2016 to shareholders record as of September
5, 2016.
* In August 2016, the local credit agency, S&P Maalot, re-affirmed Gazit-
Globe's local credit rating of ilAA-.
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 23, 2016 at 5:00 pm Israel Time / 4:00 pm Central European Time / 10:00
am Eastern Time, to review the second quarter 2016 financial results.
Shareholders, analysts and other interested parties can access the conference
call by dialing: United States 1888 668 9141, Canada 1866 485 2399, United
Kingdom 0800 917 5108, International +972 39180610, Israel 03 9180610.
A presentation will be available on the company's website under Investor
Relations/Conference Calls & Webcast at: www.gazit-globe.com
Webcast link: http://www.veidan-
stream.com/?con=Gazit_Globe_Q2_2016_Results_Conference_Call
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 June 30, 2016 Gazit-Globe owns and operates 429 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 Q2 2016 financial report. For our full Q2
2016 report in English, please go to http://www.gazitglobe.com/financial-
reports.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
------------------------------------------------------------------------------
June 30, December 31,
-----------------
2016 2015 2015
-------- -------- -------------
Unaudited Audited
----------------- -------------
NIS in millions
-------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,427 1,989 2,125
Short-term investments and loans 71 301 203
Marketable securities 52 41 38
Financial derivatives 52 136 77
Trade receivables 237 560 467
Other accounts receivable 1,073 572 363
Inventory of buildings and apartments for sale - 544 522
Current taxes receivable 37 33 24
-------- -------- -------------
2,949 4,176 3,819
Assets classified as held for sale 534 929 826
-------- -------- -------------
3,483 5,105 4,645
-------- -------- -------------
NON-CURRENT ASSETS
Equity-accounted investees 2,646 2,686 2,996
Other investments, loans and receivables 781 632 754
Available-for-sale financial assets 914 528 771
Financial derivatives 346 674 702
Investment property 73,738 65,007 70,606
Investment property under development 2,799 3,078 2,587
Fixed assets, net 128 195 170
Intangible assets, net 926 99 900
Deferred taxes 39 89 105
-------- -------- -------------
82,317 72,988 79,591
-------- -------- -------------
85,800 78,093 84,236
-------- -------- -------------
December
June 30, 31,
---------------------------
2016 2015 2015
------------- ------------- ------------
Unaudited Audited
--------------------------- ------------
NIS in millions
----------------------------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 918 730 1,062
Current maturities of non-current
liabilities 2,980 2,102 2,279
Financial derivatives 57 249 45
Trade payables 519 788 833
Other accounts payable 1,532 1,489 1,521
Advances from customers and buyers of
apartments - 287 326
Current taxes payable 91 84 111
------------- ------------- ------------
6,097 5,729 6,177
Liabilities attributable to assets
held for sale 6 275 50
------------- ------------- ------------
6,103 6,004 6,227
------------- ------------- ------------
NON-CURRENT LIABILITIES
Debentures 28,479 27,955 29,480
Convertible debentures 615 1,005 921
Interest-bearing loans from banks and
others 11,940 9,516 11,457
Financial derivatives 132 84 93
Other liabilities 410 429 402
Deferred taxes 4,916 4,209 4,661
------------- ------------- ------------
46,492 43,198 47,014
------------- ------------- ------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE COMPANY
Share capital 249 232 249
Share premium 4,989 4,413 4,983
Retained earnings 4,868 5,257 5,207
Foreign currency translation reserve (2,592 ) (2,574 ) (3,103 )
Other reserves 374 147 197
Treasury shares (21 ) (21 ) (21 )
------------- ------------- ------------
7,867 7,454 7,512
Non-controlling interests 25,338 21,437 23,483
------------- ------------- ------------
Total equity 33,205 28,891 30,995
------------- ------------- ------------
85,800 78,093 84,236
------------- ------------- ------------
CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------------------------------------------
Year ended
Six months ended Three months ended December
June 30, June 30, 31,
------------------------- -------------------------
2016 2015 2016 2015 2015
------------ ------------ ------------ ------------ -----------
Unaudited Audited
--------------------------------------------------- -----------
NIS in millions (except for per share data)
---------------------------------------------------------------
Rental income 3,062 3,041 1,523 1,514 6,150
Property
operating
expenses 936 970 449 471 1,966
------------ ------------ ------------ ------------ -----------
Net operating
rental income 2,126 2,071 1,074 1,043 4,184
Fair value gain
from investment
property and
investment
property under
development,
net 821 480 572 373 711
General and
administrative
expenses (354 ) (345 ) (179 ) (176 ) (726 )
Other income 40 7 31 3 31
Other expenses (54 ) (503 ) (36 ) (2 ) (795 )
Company's share
in earnings of
equity-
accounted
investees, net 86 85 51 55 234
------------ ------------ ------------ ------------ -----------
Operating
income 2,665 1,795 1,513 1,296 3,639
Finance
expenses (1,301 ) (875 ) (578 ) (565 ) (1,831 )
Finance income 94 703 34 86 852
------------ ------------ ------------ ------------ -----------
Income before
taxes on income 1,458 1,623 969 817 2,660
Taxes on income 289 120 188 58 166
------------ ------------ ------------ ------------ -----------
Net income from
continuing
operations 1,169 1,503 781 759 2,494
Loss from
discontinued
operation, net (230 ) (79 ) - (62 ) (188 )
------------ ------------ ------------ ------------ -----------
Net income 939 1,424 781 697 2,306
------------ ------------ ------------ ------------ -----------
Attributable
to:
Equity holders
of the Company (181 ) 506 97 130 620
Non-controlling
interests 1,120 918 684 567 1,686
------------ ------------ ------------ ------------ -----------
939 1,424 781 697 2,306
------------ ------------ ------------ ------------ -----------
Net earnings
(loss) per
share
attributable to
equity holders
of the Company
(NIS):
Basic net
earnings from
continuing
operations 0.07 2.99 0.50 0.84 4.05
------------ ------------ ------------ ------------ -----------
Basic loss from
discontinued
operation (1.00 ) (0.15 ) - (0.11 ) (0.58 )
------------ ------------ ------------ ------------ -----------
Total basic net
earnings (loss) (0.93 ) 2.84 0.50 0.73 3.47
------------ ------------ ------------ ------------ -----------
Diluted net
earnings from
continuing
operations 0.04 2.96 0.47 0.81 4.02
------------ ------------ ------------ ------------ -----------
Diluted loss
from
discontinued
operation (1.00 ) (0.15 ) - (0.11 ) (0.57 )
------------ ------------ ------------ ------------ -----------
Total diluted
net earnings
(loss) (0.96 ) 2.81 0.47 0.70 3.45
------------ ------------ ------------ ------------ -----------
FFO (EPRA Earnings)
--------------------------------------------------------------------------------------------
The table below presents the calculation of the Company's FFO, calculated according to the
recommendations EPRA and the guidelines of the Israel Securities Authority, and its FFO
per share for the stated periods:
For the year
For the 6 months ended For the 3 months ended ended
June 30, June 30, December 31
----------------------------- -----------------------------
2016 2015 2016 2015 2015
-------------- -------------- -------------- -------------- --------------
NIS in millions (other than per share data)
--------------------------------------------------------------------------
Net income (loss)
attributable to
equity holders
of the Company for
the period (181 ) 506 97 130 620
-------------- -------------- -------------- -------------- --------------
Adjustments:
Fair value gain
from investment
property and
investment property
under development,
net (821 ) (480 ) (572 ) (373 ) (711 )
Capital loss (gain)
on sale of
investment property (13 ) 5 (11 ) - 106
Changes in the fair
value of financial
instruments,
including
derivatives,
measured at fair
value through
profit or loss 610 (629 ) 84 (54 ) (693 )
Adjustments with
respect to equity-
accounted investees (16 ) (6 ) (11 ) (15 ) (50 )
Loss from disposal
and decrease of
holding interest in
investees - 1,533 - - 1,533
Deferred taxes and
current taxes with
respect to disposal
of properties 264 92 175 51 138
Gain from bargain
purchase, net of
goodwill
amortization - (1,067 ) - - (1,026 )
Acquisition costs
recognized in
profit or loss 3 3 2 2 41
Loss from early
redemption of
interest-bearing
liabilities and
financial
derivatives 40 29 11 30 78
Non-controlling
interests' share in
above adjustments 348 290 282 248 395
-------------- -------------- -------------- -------------- --------------
Nominal FFO (EPRA
Earnings) 234 276 57 19 431
-------------- -------------- -------------- -------------- --------------
Additional
adjustments:
CPI linkage
differences (31 ) (45 ) 39 97 (77 )
Depreciation and
amortization 8 10 4 5 21
Adjustments with
respect to equity-
accounted investees - (3 ) - (3 ) -
Other adjustments 66 85 42 44 252
-------------- -------------- -------------- -------------- --------------
FFO according to
the management
approach (Adjusted
EPRA Earnings) 277 323 142 162 627
-------------- -------------- -------------- -------------- --------------
Basic and diluted
FFO according to
the
management approach
per share (in NIS) 1.42 1.81 0.72 0.91 3.51
-------------- -------------- -------------- -------------- --------------
Number of shares
used in the basic
FFO per
share calculation
(in thousands) 195,481 178,420 195,485 178,425 178,426
-------------- -------------- -------------- -------------- --------------
Number of shares
used in the diluted
FFO per
share calculation
(in thousands) 195,567 178,525 195,572 178,525 178,601
-------------- -------------- -------------- -------------- --------------
Gazit-Globe Ltd.
1 HaShalom Rd.
Tel Aviv, Israel 67892
+972 3 694 8000
For additional information:
Adi Jemini
CFO, Gazit-Globe
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Gazit-Globe via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 23.08.2016 - 09:12 Uhr
Sprache: Deutsch
News-ID 490540
Anzahl Zeichen: 34910
contact information:
Town:
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Kategorie:
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