Gazit-Globe Reports Third Quarter 2016 Financial Results
(Thomson Reuters ONE) -
Continued trend of growth in FFO since the beginning of the year. Net debt to
total assets (LTV) decreased by 60 basis points to 50.7%. The Company has
extended and increased its credit facility with Citibank by $150 million to $360
million.
TEL-AVIV, Israel, Nov. 23, 2016 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:GZT)
(TSX:GZT) (TASE:GZT), a leading global real estate company focused on the
ownership, management, acquisition, development and redevelopment of
supermarket-anchored shopping centers in major urban markets, today announced
its financial results for the Third Quarter ended September 30, 2016.
References to the "Group" relate to Gazit-Globe's consolidated statements.
References to the "Company" relate to Gazit-Globe's stand-alone financial
statements. Unless otherwise stated, financial information included in this
press release relates to the "Group".
Highlights:
* NOI for the quarter totaled NIS 1,061 million (US$ 282 million) compared to
NIS 1,066 million (US$ 284 million) in the same quarter last year.
* FFO for the quarter totaled NIS 144 million (US$ 38 million), or NIS 0.74
per share (US$ 0.20), compared to NIS 142 million (US$ 38 million), or NIS
0.72 per share (US$ 0.19), in the second quarter of 2016 and NIS 158 million
(US$ 42 million), or NIS 0.89 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 rate fluctuations, the sale of shares
in subsidiaries and the equity offering that was completed at the end of
2015.
* Shareholders' equity as of September 30, 2016 increased and totaled NIS
7,837 million (US$ 2,085 million), or NIS 40.1 per share (US$ 10.67 per
share), compared to NIS 7,512 million (US$ 2,000 million), or NIS 38.4
million (US$ 10.22 per share), as of December 31, 2015 and after a dividend
distribution of NIS 1.16 per share (US$ 0.31) in the nine months ended
September 30, 2016.
* Investments in acquisition, development and redevelopment of real-estate
during the quarter totaled NIS 1 billion (US$ 276 million).
* The occupancy rate as of September 30, 2016 decreased to a level of 95.3%
compared to 95.8% as of December 31, 2015.
* Same Property NOI for the nine months ended September 30, 2016, excluding
the effect of foreign exchange rate fluctuations, increased by 0.6% compared
to the same period last year.
* As of September 30, 2016, the Group had liquid assets and unutilized
revolving credit facilities in the amount of NIS 11.3 billion (US$ 3.0
billion), of which NIS 2.4 billion (US$ 0.64 billion) was at the Company
level.
* As of September 30, 2016, net debt to total assets (LTV) decreased by 60
basis points to 50.7%, compared to 51.3% as of December 31, 2015.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share
(US$ 0.09 per share), payable on December 13, 2016 to shareholders of record
on December 6, 2016.
* Subsequent to September 30, Midrog re-affirmed Gazit-Globe's local credit
rating of Aa3.
* Subsequent to September 30, the Company extended and increased its credit
facility with Citibank by $150 million to $360 million.
* Subsequent to September 30, Gazit Brasil entered into a binding agreement
for the purchase of 33% of Shopping Cidade Jardim in Sao Paulo for R$ 410M
(approximately USD 130M).
* Subsequent to September 30, Gazit Globe's US subsidiary Equity One
(NYSE:EQY) announced a merger transaction with Regency Centers Corporation
(NYSE:REG). The merger creates the largest high quality shopping center REIT
in the US with an enterprise value of approximately US$ 15.6 billion.
Rachel Lavine, CEO of Gazit-Globe: "We are pleased to conclude another quarter
in which we see the continued momentum of growth in FFO since the beginning of
the year as well as improvements in the financial ratios and the strength of our
balance sheet. We recently announced the increase and extension of our credit
facility with Citibank to $360 million. This allows us greater flexibility to
diversify our sources of credit and funding in international markets. The
significant transaction announced last week for the merger of Equity One and
Regency will create the highest quality and largest shopping center REIT in the
US. The transaction will result in a net gain to Gazit Globe of NIS 1 billion,
or NIS 5 per share, as well as savings of its corporate expenses of
approximately NIS 6 million per annum. We continue to work towards realizing our
strategy and we believe that the unique quality of our portfolio will contribute
to our ability to maintain the positive trend in our results, while taking
advantage of opportunities to strengthen our portfolio through development and
redevelopment and through the making of strategic acquisitions, as we have
recently seen in Brazil."
Financial highlights for third quarter 2016:
* Rental income for the quarter totaled NIS 1,512 million compared to NIS
1,547 million in the same quarter last year. Excluding the effect of foreign
exchange rate fluctuations, the rental income decreased by 1.6% compared to
the same quarter last year.
* NOI for the quarter remained stable and totaled NIS 1,061 million compared
to NIS 1,066 million in the same quarter last year. Excluding the effect of
exchange rate fluctuations NOI increased by 0.3% compared to the same
quarter last year.
* FFO for the quarter totaled NIS 144 million, or NIS 0.74 per share, compared
to NIS 142 million or NIS 0.72 per share in the second quarter of 2016 and
NIS 158 million or NIS 0.89 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 September 30, 2016 was 95.3% compared to 95.8% as
of December 31, 2015. By region, occupancy rates as of September 30, 2016
were: 95.4% in the US; 95.0% in Canada; 96.0% in North Europe; and 95.7% in
Central and Eastern Europe.
* EPRA NAV per share as of September 30, 2016 was NIS 54.5 per share compared
to NIS 52.9 per share as of December 31, 2015.
* Net income attributable to the Company's shareholders totaled NIS 381
million, or NIS 1.98 per share, compared to a loss of NIS 92 million, or NIS
0.52 per share, in the same quarter last year.
* The net fair value gain of investment property and investment property under
development was NIS 291 million, compared to stability in the value of
investment property and investment property under development in the same
quarter last year.
* Cash flow from operating activities totaled NIS 564 million, compared to NIS
673 million in the same quarter last year.
Financial highlights for the first 9 months of 2016:
* Rental income for the period totaled NIS 4,574 million compared to NIS
4,588 million in the same period last year. Excluding the effect of foreign
exchange rate fluctuations, the rental income increased by 2.6% compared to
the same period last year.
* NOI for the period totaled NIS 3,187 million compared to NIS 3,137 million
in the same period last year an increase of 1.6%. Excluding the effect of
foreign exchange rate fluctuations, NOI increased by 4.4% compared to the
same period last year.
* FFO for the period totaled NIS 421 million, or NIS 2.15 per share, compared
to NIS 481 million, or NIS 2.69 per share, in the same period 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 the equity offering that was completed at the end of 2015.
* Net Income attributable to the Company's shareholders totaled NIS 200
million, or NIS 0.94 per share, compared to net income of NIS 414 million,
or NIS 2.30 per share, in the same period last year. The decrease 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 1,167 million, compared to
NIS 1,170 million in the same period last year.
Acquisition, Development, Redevelopment and Capital Recycling Activities:
* During the period, the Group invested NIS 3,161 million. Total investment
included NIS 1,371 million invested in 9 income-producing properties
totaling 76 thousand square meters, as well as NIS 1,790 million in
development and redevelopment projects.
* As of September 30, 2016, the Group had five properties under development
with a gross leasable area (GLA) of 107 thousand square meters with a total
investment of NIS 1.3 billion, and 21 properties under redevelopment with a
GLA of 298 thousand square meters with a total investment of NIS 4.5
billion. The additional cost to complete the properties under development
and redevelopment totaled NIS 1.6 billion.
* Subsequent to September 30, Gazit Brasil entered into a binding agreement to
purchase 33% of Shopping Cidade Jardim in Sao Paulo, Brazil for R$ 410M
(approximately USD 130M).
* Subsequent to September 30, Gazit Globe's US subsidiary Equity One
(NYSE:EQY) announced a merger transaction with Regency Centers Corporation
(NYSE:REG). The merger will create the largest high quality shopping center
REIT in the US with an enterprise value of approximately US$ 15.6 billion.
Financing Activities:
* The average nominal annual cost of debt during the period was 4.0%, compared
to 4.3% in the same period last year.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share,
payable on December 13, 2016 to shareholders record as of December 6, 2016.
* Subsequent to September 30, the Company extended and increased its credit
facility with Citibank by $150 million to $360 million.
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 Wednesday,
November 23, 2016 at 5:00 pm Israel Time / 4:00 pm Central European Time /
10:00 am Eastern Time, to review the third 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 / Israel +972 3 9180687
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_Q3_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 September 30, 2016 Gazit-Globe owns and operates 427 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$ 22 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 Q3 2016 financial report. For our full Q3
2016 report in English, please go to http://www.gazitglobe.com/financial-
reports.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, December 31,
-------------------
2016 2015 2015
-------------------------------
Unaudited Audited
-------------------------------
NIS in millions
-------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,398 1,717 2,125
Short-term investments and loans 51 234 203
Marketable securities 106 35 38
Financial derivatives 95 159 77
Trade receivables 190 534 467
Other accounts receivable 524 501 363
Inventory of buildings and apartments for sale - 520 522
Current taxes receivable 30 24 24
-------------------------------
2,394 3,724 3,819
Assets classified as held for sale 542 596 826
-------------------------------
2,936 4,320 4,645
-------------------------------
NON-CURRENT ASSETS
Equity-accounted investees 2,316 2,962 2,996
Other investments, loans and receivables 1,329 742 754
Available-for-sale financial assets 634 596 771
Financial derivatives 481 669 702
Investment property 73,678 71,399 70,606
Investment property under development 2,642 3,055 2,587
Fixed assets, net 141 262 170
Intangible assets, net 921 904 900
Deferred taxes 32 127 105
-------------------------------
82,174 80,716 79,591
-------------------------------
85,110 85,036 84,236
-------------------------------
December
September 30, 31,
---------------------------
2016 2015 2015
------------- ------------- ------------
Unaudited Audited
--------------------------- ------------
NIS in millions
----------------------------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 605 888 1,062
Current maturities of non-current
liabilities 2,216 2,501 2,279
Financial derivatives 58 87 45
Trade payables 528 816 833
Other accounts payable 1,304 1,735 1,521
Advances from customers and buyers of
apartments - 294 326
Current taxes payable 79 152 111
------------- ------------- ------------
4,790 6,473 6,177
Liabilities attributable to assets
held for sale 49 3 50
------------- ------------- ------------
4,839 6,476 6,227
------------- ------------- ------------
NON-CURRENT LIABILITIES
Debentures 30,299 30,949 29,480
Convertible debentures 592 959 921
Interest-bearing loans from banks and
others 10,723 10,533 11,457
Financial derivatives 108 186 93
Other liabilities 382 437 402
Deferred taxes 4,901 4,885 4,661
------------- ------------- ------------
47,005 47,949 47,014
------------- ------------- ------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE COMPANY
Share capital 249 232 249
Share premium 4,991 4,413 4,983
Retained earnings 5,180 5,083 5,207
Foreign currency translation reserve (3,016 ) (2,663 ) (3,103 )
Other reserves 454 79 197
Treasury shares (21 ) (21 ) (21 )
------------- ------------- ------------
7,837 7,123 7,512
Non-controlling interests 25,429 23,488 23,483
------------- ------------- ------------
Total equity 33,266 30,611 30,995
------------- ------------- ------------
85,110 85,036 84,236
------------- ------------- ------------
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Nine months ended Three months ended Year ended
September 30, September 30, December
31,
---------------------------------------------------
2016 2015 2016 2015 2015
--------------------------------------------------------------
Unaudited Audited
--------------------------------------------------------------
NIS in millions (except for per share data)
--------------------------------------------------------------
Rental income 4,574 4,588 1,512 1,547 6,150
Property
operating 1,387 1,451 451 481 1,966
expenses
--------------------------------------------------------------
Net operating 3,187 3,137 1,061 1,066 4,184
rental income
Fair value gain
from investment
property and 1,112 480 291 - 711
investment
property under
development, net
General and
administrative (515 ) (558 ) (161 ) (213 ) (726 )
expenses
Other income 40 22 - 15 31
Other expenses (79 ) (628 ) (25 ) (125 ) (795 )
Company's share
in earnings of 98 121 12 36 234
equity-accounted
investees, net
--------------------------------------------------------------
Operating 3,843 2,574 1,178 779 3,639
income
Finance expenses (1,586 ) (1,410 ) (503 ) (548 ) )
(1,831
Finance income 187 718 311 29 852
--------------------------------------------------------------
Income before 2,444 1,882 986 260 2,660
taxes on income
Taxes on income 406 106 117 (13 ) 166
(tax benefit)
--------------------------------------------------------------
Net income from
continuing 2,038 1,776 869 273 2,494
operations
Loss from
discontinued (230 ) (150 ) - (71 ) (188 )
operation, net
--------------------------------------------------------------
Net income 1,808 1,626 869 202 2,306
--------------------------------------------------------------
Attributable to:
Equity holders 200 414 381 (92 ) 620
of the Company
Non-controlling 1,608 1,212 488 294 1,686
interests
--------------------------------------------------------------
1,808 1,626 869 202 2,306
--------------------------------------------------------------
Net earnings
(loss) per share
attributable to
equity holders
of the Company
(NIS):
Basic net
earnings (loss) 2.00 2.71 1.99 (0.27 ) 4.05
from continuing
operations
--------------------------------------------------------------
Basic loss from
discontinued (1.00 ) (0.39 ) - (0.25 ) (0.58 )
operation
--------------------------------------------------------------
Total basic net 1.00 2.32 1.99 (0.52 ) 3.47
earnings (loss)
--------------------------------------------------------------
Diluted net
earnings (loss) 1.94 2.69 1.98 (0.27 ) 4.02
from continuing
operations
--------------------------------------------------------------
Diluted loss
from (1.00 ) (0.39 ) - (0.25 ) (0.57 )
discontinued
operation
--------------------------------------------------------------
Total diluted
net earnings 0.94 2.30 1.98 (0.52 ) 3.45
(loss)
--------------------------------------------------------------
FFO (EPRA Earnings)
The table below presents the calculation of the Company's FFO, calculated according to
the EPRA recommendations and the guidelines of the Israel Securities Authority, and
its FFO per share for the stated periods:
For the 9 months ended For the 3 months ended For the year
ended
September 30, September 30, December 31,
----------------------------- -----------------------------
2016 2015 2016 2015 2015
-------------- -------------- -------------- -------------- -------------
NIS in millions (other than per share data)
-------------------------------------------------------------------------
Net income
(loss)
attributable
to equity 200 414 381 (92 ) 620
holders of
the Company
for the
period
-------------- -------------- -------------- -------------- -------------
Adjustments:
Fair value
gain from
investment
property and
investment (1,112 ) (480 ) (291 ) - (711 )
property
under
development,
net
Capital loss
(gain) on
sale of (5 ) 91 8 86 106
investment
property
Changes in
the fair
value of
financial
instruments,
including 347 (597 ) (263 ) 32 (693 )
derivatives,
measured at
fair value
through
profit or
loss
Adjustments
with respect
to equity- (6 ) (13 ) 10 (5 ) (50 )
accounted
investees
Loss on
disposal of - 1,531 - - 1,533
investees
Deferred
taxes and
current
taxes with 358 74 93 (18 ) 138
respect to
disposal of
properties
Gain from
bargain
purchase, - (1,065 ) - - (1,026 )
net of
goodwill
amortization
Acquisition
costs
recognized 3 35 1 31 41
in profit or
loss
Loss from
early
redemption 75 67 36 38 78
of interest-
bearing
liabilities
Non-
controlling
interests' 462 264 113 (25 ) 395
share in
above
adjustments
-------------- -------------- -------------- -------------- -------------
Nominal FFO
(EPRA 322 321 88 47 431
Earnings)
-------------- -------------- -------------- -------------- -------------
Additional
adjustments:
CPI linkage (2 ) (20 ) 29 25 (77 )
differences
Depreciation
and 12 16 4 6 21
amortization
Other 89 164 23 80 252
adjustments
-------------- -------------- -------------- -------------- -------------
FFO
according to
the
management 421 481 144 158 627
approach
(Adjusted
EPRA
Earnings)
-------------- -------------- -------------- -------------- -------------
Basic and
diluted FFO
according to
the 2.15 2.69 0.74 0.89 3.51
management
approach per
share (in
NIS)
-------------- -------------- -------------- -------------- -------------
Number of
shares used
in the basic
FFO per 195,485 178,422 195,494 178,427 178,426
share
calculation
(in
thousands)
-------------- -------------- -------------- -------------- ------------
Number of
shares used
in the
diluted FFO 195,567 178,579 195,567 178,549 178,601
per share
calculation
(in
thousands)
-------------- -------------- -------------- -------------- ------------
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: 23.11.2016 - 10:03 Uhr
Sprache: Deutsch
News-ID 508774
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contact information:
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