Gazit-Globe Reports Year-End and Fourth Quarter 2016 Financial Results
(Thomson Reuters ONE) -
Continue to make progress on its strategy while strengthening financial position
TEL-AVIV, Israel, March 27, 2017 (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, announced today
its financial results for the year-end and fourth quarter ended December
31, 2016.
Highlights:
* Rental income totaled NIS 4,801 million (US$ 1,249 million) compared to NIS
4,809 million (US$ 1,251 million) in 2015.
* NOI for 2016 totaled NIS 3,194 million (US$ 831 million) compared to NIS
3,196 million (US$ 831 million) in 2015.
* FFO for 2016 totaled NIS 586 million (US$ 152 million), or NIS 3.00 per
share (US$ 0.78), compared to NIS 627 million (US$ 163 million), or NIS
3.51 per share (US$ 0.91) in 2015. The decrease in FFO is mainly due to the
effects of exchange rates, the sale of shares in subsidiaries and a loss
attributable to the sale of the Company's shares in Dori Construction.
* 2016 profit attributable to shareholders totaled NIS 787 million (US$ 205
million), or NIS 3.96 per diluted share (US$ 1.03), compared to NIS 620
million (US$ 161 million), or NIS 3.45 per diluted share (US$ 0.90 per
share) in 2015.
* Investments in acquisition, development and redevelopment of real-estate in
2016 totaled NIS 4.6 billion (US$ 1,195 million). In addition, in 2016 the
Company disposed of non-core assets totaling NIS 1.5 billion (US$ 381
million).
* Same Property NOI for the Group in 2016, excluding the effects of foreign
exchange rate, increased by 1.2% compared to 2015 (or 2.1% excluding
Russia). The occupancy rate as of December 31, 2016, remained high at
95.6%, compared to 95.8% as of December 31, 2015.
* The net fair value gain of investment property and investment property under
development was NIS 885 million (US$ 230 million), compared to a fair value
loss of NIS 372 million (US$ 97 million) in 2015.
* Consolidated cash flow from operating activities totaled NIS 1,909 million
(US$ 457 million), compared to NIS 1,514 million (US$ 394 million) in 2015.
* Shareholders' equity as of December 31, 2016, increased and totaled NIS
8,158 million (US$ 2,122 million), or NIS 41.7 per share (US$ 10.8),
compared to NIS 7,512 million (US$ 1,954 million), or NIS 38.4 million per
share (US$ 10.0), as of December 31, 2015.
* EPRA NAV per share as of December 31, 2016, was approximately NIS 56.5 per
share (US$ 14.7), compared to approximately NIS 52.9 per share (US$ 13.8) as
of December 31 2015.
* As of December 31, 2016, the Group had cash, cash equivalent and unused
revolving credit facilities in the aggregate amount of NIS 12.1 billion (US$
3.15 billion), of which NIS 3.2 billion (US$ 0.83 billion) was at the
Company level.
* The Group's net debt to total assets (LTV) as of December 31, 2016, was
50.1%, compared to 51.3% as of December 31, 2015.
* As was previously announced, Gazit Globe's US subsidiary Equity One
(NYSE:EQY) completed the merger transaction with Regency Centers Corporation
(NYSE:REG) pursuant to which REG is the surviving entity. Gazit Globe is the
largest shareholder in the combined company, which is the largest high-
quality shopping-center REIT in the US and was recently added to the S&P
500.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share
(approx. US$ 0.09 per share), payable on April 24, 2017 to shareholders of
record on April 12, 2017.
Dori J. Segal, Vice-Chairman and CEO Commented: "2016 was a very busy year for
Gazit Globe, in which Equity one and Regency Centers merged into the largest,
high quality shopping center REIT in the US, we exited the construction business
in Israel and as part of our new strategy, we invested heavily in Brazil and in
Israel increasing the private real estate part of the balance sheet from 19% to
25%. Our European subsidiaries continued to significantly improve their business
and all those together strengthen our platform and financial position and
increased our Shareholders' Equity. I want to thank Rachel Lavine; today, our
company is better than it was in 2015.
2017 is off to a good start; we have completed the merger transaction in the US
and took further steps to strengthen and increase our financial position and
flexibility, which will greatly help us to continue executing our strategy in
the near term."
Additional highlights for the fourth quarter of 2016:
* Rental income totaled NIS 1,208 million compared to NIS 1,225 million in the
same quarter last year. Excluding the effect of foreign exchange rate
fluctuations, the rental income decreased by 0.1% compared to the same
quarter last year.
* NOI for the quarter totaled NIS 789 million compared to NIS 804 million in
the same quarter last year. Excluding the effect of foreign exchange rate
fluctuations, NOI decreased by 0.6% compared to the same quarter last year.
* FFO for the quarter totaled NIS 165 million, or NIS 0.84 per share, compared
to NIS 146 million, or NIS 0.82 per share, in the same quarter last year.
* Consolidated cash flow from operating activities totaled NIS 742 million,
compared to NIS 344 million in the same quarter last year.
Acquisition, Development, Redevelopment and Capital Recycling Activities:
* During 2016, the Group invested NIS 4,594 million, which included NIS 2,454
million invested in the acquisition of 15 income-producing properties
totaling 111 thousand square meters, as well as NIS 2,140 million in
development and redevelopment projects.
* As of December 31, 2016, the Group had 3 properties under development with a
gross leasable area (GLA) of 76 thousand square meters and a total
investment of NIS 1.0 billion, and 21 properties under redevelopment with a
GLA of 225 thousand square meters and a total investment of NIS 4.9 billion.
The additional cost to complete the properties under development and
redevelopment totaled NIS 1.8 billion.
* Subsequent to balance sheet date, Gazit Globe's US subsidiary Equity One
(NYSE:EQY) completed the merger transaction with Regency Centers Corporation
(NYSE:REG). Gazit Globe is the largest shareholder in the combined company,
which is the largest high-quality shopping-center REIT in the US.
* During the fourth quarter of 2016, Gazit Brasil completed the acquisition of
33% of Shopping Cidade Jardim in Sao Paulo, Brazil for R$ 410M (approx. USD
130 million).
Financing Activities:
* The average interest rate on outstanding debt was 4.0%, compared to 4.3% in
2015.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share,
payable on April 24, 2017 to shareholders record as of April 12, 2017.
* During the fourth quarter of 2016, the Company extended and increased its
credit facility with Citibank by approximately US$150 million to US$360
million.
ACCOUNTING AND OTHER DISCLOSURES
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".
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, March
27, 2017 at 5:00 pm Israel Time / 4:00 pm Central European Time / 10:00 US
Eastern Time, to review the year-end and fourth 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 9180644
A presentation and replay of the call will be available on the company's website
under "Investor Relations" at: www.gazitglobe.com
Webcast link: http://www.veidan-
stream.com/?con=Gazit_Globe_Q4_2016_Results_Conference_Call
About Gazit-Globe
Gazit-Globe is a global owner, developer and operator of high quality necessity-
driven supermarket-anchored retail properties in urban markets. 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-
35 index in Israel. As of December 31, 2016 Gazit-Globe owns and operates 426
properties in more than 20 countries, with a gross leasable area of
approximately 6.6 million square meters and a total value of approximately 22
US$ billion.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company's financial report is available on Gazit-
Globe website at www.gazitglobe.com
Investors Contact: IR(at)gazitgroup.com, Media Contact: PR(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 year-end and Q4 2016 financial report. For
our full year-end and Q4 2016 report in English, please go
to http://www.gazitglobe.com/investor-relations/financial-reports.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31,
------------------------
2016 2015
--------- --------------
Note NIS in millions
------ ------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 3 1,520 2,125
Short-term investments and loans 4a 96 203
Marketable securities 4b 212 38
Financial derivatives 36c 98 77
Trade receivables 5 163 467
Other accounts receivable 6 329 363
Inventory of buildings and apartments for sale 7 14 522
Income taxes receivable 26 24
--------- --------------
2,458 3,819
Assets classified as held for sale 8 21,132 826
--------- --------------
23,590 4,645
--------- --------------
NON-CURRENT ASSETS
Equity-accounted investees 9 2,097 2,996
Other investments, loans and receivables 10 1,223 754
Available-for-sale financial assets 11 384 771
Financial derivatives 36c 516 702
Investment property 12 55,982 70,606
Investment property under development 13 2,113 2,587
Fixed assets, net 14 152 170
Intangible assets, net 15 815 900
Deferred taxes 25p 15 105
--------- --------------
63,297 79,591
--------- --------------
86,887 84,236
--------- --------------
The accompanying notes are an integral part of these consolidated financial
statements.
December 31,
----------------------
2016 2015*)
----------- ----------
Note NIS in millions
------ ----------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 16 775 1,062
Current maturities of non-current liabilities 17 3,043 2,279
Financial derivatives 36c 47 45
Trade payables 18 377 833
Other accounts payable 19 1,820 1,521
Advances from customers and buyers of apartments 7 - 326
Income taxes payable 93 111
----------- ----------
6,155 6,177
Liabilities attributed to assets held for sale 8 7,024 50
----------- ----------
13,179 6,227
----------- ----------
NON-CURRENT LIABILITIES
Debentures 20 27,319 29,480
Convertible debentures 21 296 921
Interest-bearing loans from banks and others 22 8,183 11,457
Financial derivatives 36c 50 93
Other liabilities 23 283 402
Deferred taxes 25p 3,809 4,661
----------- ----------
39,940 47,014
----------- ----------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY 27
Share capital 249 249
Share premium 4,992 4,983
Retained earnings 5,699 5,207
Foreign currency translation reserve (3,257 ) (3,103 )
Other reserves 496 197
Treasury shares (21 ) (21 )
----------- ----------
8,158 7,512
Non-controlling interests 27g 25,610 23,483
----------- ----------
Total equity 33,768 30,995
----------- ----------
86,887 84,236
----------- ----------
*) Reclassified, refer to Note 2ff.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Year ended
December 31,
-------------------------------
2016 2015*) 2014*)
---------- ---------- ---------
Note NIS in millions
------- -------------------------------
(except for per share data)
---------------------------------
Rental income 30 4,801 4,809 3,725
Property operating expenses 31 1,607 1,613 1,269
---------- ---------- ---------
Net operating rental income 3,194 3,196 2,456
---------- ---------- ---------
Fair value gain (loss) from investment
property and investment property under
development, net 885 (372 ) 400
General and administrative expenses 32 (542 ) (568 ) (386 )
Other income 33a 37 27 52
Other expenses 33b (236 ) (795 ) (57 )
Company's share in earnings of equity-
accounted investees, net 9b 142 164 3
---------- ---------- ---------
Operating income 3,480 1,652 2,468
Finance expenses 34a (1,600 ) (1,586 ) (1,835 )
Finance income 34b 325 849 144
---------- ---------- ---------
Income before taxes on income 2,205 915 777
Taxes on income (tax benefit) 25q 434 (79 ) 282
---------- ---------- ---------
Net income from continuing operations 1,771 994 495
Net income from discontinued
operations, net 9d,9g 1,409 1,312 588
---------- ---------- ---------
Net income 3,180 2,306 1,083
---------- ---------- ---------
Attributable to:
Equity holders of the Company 787 620 73
Non-controlling interests 2,393 1,686 1,010
---------- ---------- ---------
3,180 2,306 1,083
---------- ---------- ---------
Net earnings (loss) per share
attributable to equity holders of the
Company (NIS): 35
Basic earnings (loss) from continuing
operations 2.70 1.36 (0.70 )
---------- ---------- ---------
Basic net earnings from discontinued
operations 1.33 2.11 1.11
---------- ---------- ---------
Total basic net earnings 4.03 3.47 0.41
---------- ---------- ---------
Diluted earnings (loss) from continuing
operations 2.63 1.35 (0.72 )
---------- ---------- ---------
Diluted net earnings from discontinued
operations 1.33 2.10 1.11
---------- ---------- ---------
Total diluted net earnings 3.96 3.45 0.39
---------- ---------- ---------
*) Reclassified, refer to Note 2ff
The accompanying notes are an integral part of these consolidated financial
statements.
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 year For the 3 months ended
ended December 31 December 31
------------------------- ------------ ------------------------
2016 2015 2014 2016 2015
------------ ------------ ------------ ------------ -----------
NIS in millions (other than per share data)
---------------------------------------------------------------
Net income
attributable to
equity holders of
the Company in the
period 787 620 73 587 206
------------ ------------ ------------ ------------ -----------
Adjustments:
Fair value gain
from investment
property and
investment
property under
development, net (2,081 ) (711 ) (1,053 ) (969 ) (231 )
Capital loss
(gain) on sale of
investment
property (6 ) 106 65 (1 ) 15
Changes in the
fair value of
financial
instruments,
including
derivatives,
measured at fair
value through
profit or loss 120 (693 ) 156 (227 ) (97 )
Adjustments with
respect to equity-
accounted
investees (15 ) (50 ) 324 (8 ) (36 )
Loss on disposal
of investees - 1,533 1 - -
Deferred taxes and
current taxes with
respect to
disposal of
properties 576 138 399 219 64
Gain from bargain
purchase, net of
goodwill
impairment 23 (1,026 ) (47 ) 23 39
Acquisition costs
recognized in
profit or loss 4 41 6 1 7
Loss from early
redemption of
interest-bearing
liabilities and
financial
derivatives 76 78 154 - 11
Non-controlling
interests' share
in above
adjustments 917 395 267 455 132
------------ ------------ ------------ ------------ -----------
Nominal FFO (EPRA
Earnings) 401 431 345 80 110
------------ ------------ ------------ ------------ -----------
Additional
adjustments:
CPI and exchange
rate linkage
differences (24 ) (77 ) (5 ) (21 ) (57 )
Depreciation and
amortization 16 21 13 4 6
Adjustments with
respect to equity-
accounted
investees - - (3 ) - 0
Other
adjustments((1)) 193 252 248 102 87
------------ ------------ ------------ ------------ -----------
FFO according to
the management
approach (Adjusted
EPRA Earnings) 586 627 598 165 146
------------ ------------ ------------ ------------ -----------
Basic FFO per
share according to
the management
approach (in NIS) 3.00 3.51 3.39 0.84 0.82
------------ ------------ ------------ ------------ -----------
Diluted FFO per
share according to
the management
approach (in NIS) 3.00 3.51 3.39 0.84 0.82
------------ ------------ ------------ ------------ -----------
Number of shares
used in the basic
FFO per share
calculation (in
thousands)((2)) 195,493 178,426 176,459 195,516 178,433
------------ ------------ ------------ ------------ -----------
Number of shares
used in the
diluted FFO
per share
calculation (in
thousands)((2)) 195,567 178,601 176,546 195,566 178,581
------------ ------------ ------------ ------------ -----------
(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 Luzon Group in the comparative periods), and the cost of debt with
respect thereto, non-recurring restructuring expenses, and internal costs
(mainly salary) incurred in the leasing of properties.
(2 ) Weighted average for the period.
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: 27.03.2017 - 09:07 Uhr
Sprache: Deutsch
News-ID 532474
Anzahl Zeichen: 31562
contact information:
Town:
TEL AVIV-YAFO
Kategorie:
Business News
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