Gazit-Globe Report Strong First Half 2017 Financial Results
(Thomson Reuters ONE) -
TEL-AVIV, Israel, Aug. 22, 2017 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:TSX)
(TASE:GZT), a global owner, developer, and operator of supermarket-anchored
shopping centers and retail-based, mixed-use properties located in urban growth
markets, announced today financial results for the three and six months ended
June 30, 2017.
Selected Financial Information:
+----------------+-----------------+-----------+---------------------+---------+
|(in NIS | 3 months | | 6 months | |
|millions | ended June | | ended June | |
|except per +--------+--------+ +---------+-----------+ |
|share data) | | | Change | | | Change |
|(Unaudited) | 2017 | 2016 | % | 2017 | 2016 | % |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Property | | | | | | |
|rental income | 689 | 716 | (3.8 %) | 1,387 | 1,430 | (3.0 %)|
+----------------+--------+--------+-----------+---------+-----------+---------+
|NOI | 490 | 505 | (3.0 %) | 967 | 997 | (3.0 %)|
+----------------+--------+--------+-----------+---------+-----------+---------+
|NOI adjusted | | | | | | |
|for exchange | | | | | | |
|rates | 490 | 468 | 4.7 % | 967 | 930 | 4.0 % |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Economic FFO | 175 | 144 | 22 % | 349 | 281 | 24 % |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Economic FFO | | | | | | |
|per share | | | | | | |
|(NIS) | 0.89 | 0.73 | 22 % | 1.78 | 1.43 | 24 % |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Economic FFO | | | | | | |
|adjusted for | | | | | | |
|exchange rate | 175 | 122 | 43 % | 349 | 249 | 40 % |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Economic FFO | | | | | | |
|per share | | | | | | |
|adjusted for | | | | | | |
|exchange rate | | | | | | |
|(NIS) | 0.89 | 0.62 | 44 % | 1.78 | 1.27 | 40 % |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Fair value | | | | | | |
|gain (loss) | | | | | | |
|from | | | | | | |
|investment | | | | | | |
|property and | | | | | | |
|investment | | | | | | |
|property under | | | | | | |
|development, | | | | | | |
|net | (6 )| 28 | - | 44 | 131 | - |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Net income | | | | | | |
|(loss) | | | | | | |
|attributable | | | | | | |
|to equity | | | | | | |
|holders of the | | | | | | |
|company | 371 | 97 | - | 95 | (181 ) | - |
+----------------+--------+--------+-----------+---------+-----------+---------+
|Diluted net | | | | | | |
|income (loss) | | | | | | |
|per share | | | | | | |
|attributable | | | | | | |
|to equity | | | | | | |
|holders of the | | | | | | |
|Company (NIS) | 1.87 | 0.47 | - | 0.44 | (0.96 ) | - |
+----------------+--------+--------+-----------+---------+-----------+---------+
+------------------------------------------------+--------------+-------------+
| | 30/06/2017 | |
| (in NIS million except per share data) | (Unaudited) | 31/12/2016 |
+------------------------------------------------+--------------+-------------+
| Shareholder's Equity | 9,014 | 8,158 |
+------------------------------------------------+--------------+-------------+
| Shareholder's Equity Per Share (NIS) | 46.1 | 41.7 |
+------------------------------------------------+--------------+-------------+
| Net Debt to Total Assets (LTV) (Consolidated) | 54.1 % | 50.1 % |
+------------------------------------------------+--------------+-------------+
| Net Debt to Total Assets (LTV) (Expanded Solo) | 53.9 % | 62.0 % |
+------------------------------------------------+--------------+-------------+
* Economic FFO for the quarter totaled NIS 175 million (US$ 50 million), or
NIS 0.89 per share (US$ 0.25 per share), compared with NIS 144 million (US$
41 million), or NIS 0.73 per share (US$ 0.21 per share), in the same quarter
last year.
* Economic FFO for the six months ended June 2017 totaled NIS 349 million (US$
100 million), or NIS 1.78 per share (US$ 0.51 per share), compared with NIS
281 million (US$ 80 million), or NIS 1.43 per share (US$ 0.41 per share), in
the same period last year.
* Same property NOI in the six months ended June, 2017 increased 3.4% compared
with the same period in the previous year. Excluding Russia, same property
NOI increased 2.5% compared with the same period in the previous year.
* The occupancy rate as of June 30, 2017 is at 94.9% (95.6% as of December
31, 2016).
* Investments in acquisitions, developments and redevelopments in the six
months ended June, 2017 totaled NIS 1.4 billion (US$ 412 million).
* As of June 30, 2017, the Company and its subsidiaries had cash, cash
equivalents and undrawn revolving credit facilities in the aggregate amount
of NIS 6.8 billion (US$ 1.94 billion), of which NIS 3.5 billion (US$ 1.0
billion) was at the Company level. In addition, First Capital Realty Inc.
had liquidity including available undrawn credit facilities of NIS 1.4
billion (US$ 0.4 billion).
* Cash flow from operating activities in the quarter totaled NIS 180 million
(US$ 51 million), compared with NIS 313 million (US$ 89 million) in the same
quarter last year. The decrease in cash flows from operating activities is
primarily due to the deconsolidation of Equity One and First Capital Realty
Inc.
Dori J. Segal, Vice-Chairman and CEO Commented: "We are pleased with our
operating and financial performance in the second quarter which exceeded our
expectations. In the next 18 months we will continue to recycle capital into
high quality assets and redevelopment activities and advance our strategic
plan."
Acquisition, Development, Redevelopment and Capital Recycling Activities:
* During the six months ended June 30, 2017, the Group (excluding Regency)
acquired 5 income producing assets totaling 26,000 sqm, in total investment
of NIS 443 (US$ 127 million), as well as invested NIS 996 (US$ 284 million)
million in development and redevelopment projects.
* As of June 30, 2017, the Group (excluding Regency) had two properties under
development with a gross leasable area (GLA) of 61,000 sqm with total
investment of NIS 1,553 million, and 14 properties under redevelopment with
a GLA of 127,000 sqm and a total investment of NIS 2.9 billion (US$ 0.83
billion). The cost to complete the properties under development and
redevelopment totaled NIS 1.8 billion (US$ 0.51 billion).
* Subsequent to the quarter end, Gazit Horizons acquired a commercial building
for redevelopment near Brickell City Centre, Miami for approx. US$ 29.4
million. This purchase of 4,500 sqm is the first real estate acquisition for
Gazit Horizons. Brickell neighborhood is known for its affluent resident
population and overall high socioeconomic demographic.
Financing Activities in Q2 2017:
* The average interest rate in the quarter reflects an average nominal annual
interest of 3.9% on the interest-bearing debt of the Company and its
subsidiaries, as compared with 4.0% in the comparable quarter of the prior
year and 4.0% in 2016.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share,
payable on October 3, 2017 to shareholders of record as of September
19, 2017.
* In August 2017, S&P Maalot, re-affirmed Gazit-Globe's local credit rating of
ilAA- with a stable outlook.
Economic FFO Guidance
Presented below is the 2017 guidance, based on publicly available information
and Management's assessments, including the FFO guidance of public investees,
where published, and also on assumptions:
* Exchange and interest rates known as of the filing date.
* No significant investments, acquisitions and disposals, other than
development work.
* No material unexpected events in the business.
+-----------------+----------+----------+-------------------+------------------+
| | | | Full Year 2017 | Full Year |
| | 4-6/17 | 1-6/17 | Previous | 2017 Updated |
| | Actual | Actual | Guidance | Guidance |
+-----------------+----------+----------+-------------------+------------------+
|Economic FFO | | | | |
|(NIS in | | | | |
|million) | 175 | 349 | 626 - 606 | 649 - 635 |
+-----------------+----------+----------+-------------------+------------------+
|Economic FFO | | | | |
|per share (NIS) | 0.89 | 1.78 | 3.20 - 3.10 | 3.32 - 3.25 |
+-----------------+----------+----------+-------------------+------------------+
The Company's Economic FFO guidance for 2017 is forward-looking information, as
defined in the Israeli Securities Law, 1968, which is based on the
aforementioned assumptions, including assessments and estimates by Management of
the of Company and the Group companies pertaining to future events and matters
whose materialization is not certain nor under the Group's control. There is no
certainty that the guidance will be realized, wholly or partly, and actual
results could be materially different from those set forth above due, inter
alia, to their dependence on events that are not under the control of the
Company and the Group.
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 real estate
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 generally 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 22nd, 2017 at 5:00 pm Israel Time / 10:00 am US Eastern Time, to review
the second quarter ended June 30, 2017 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 9180610
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://veidan-stream.com/gazitglobeq2-2017.html
About Gazit-Globe
Gazit-Globe is a global owner developer and operator of supermarket-anchored
shopping centers and retail-based, mixed-use properties in North America,
Brazil, Israel, northern, central and Eastern Europe, located in urban growth
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 June 30, 2017 Gazit-Globe owns
and operates 132 properties, with a gross leasable area of approximately 2.7
million square meters and a total value of approximately NIS 36 billion. In
addition, the Company owns 32.7% of First Capital Realty Inc and 11.5% of
Regency Centers Corporation.
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.
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: 22.08.2017 - 12:52 Uhr
Sprache: Deutsch
News-ID 557407
Anzahl Zeichen: 18187
contact information:
Town:
TEL AVIV-YAFO
Kategorie:
Business News
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