Gazit-Globe Report Third Quarter 2017 Financial Results
(Thomson Reuters ONE) -
TEL-AVIV, ISRAEL, Nov. 20, 2017 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:GZT)
(TSX:GZT) (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 nine
months ended September 30, 2017.
Selected Financial Information:
+---------------------+--------------------+-------+-------------------+-------+
|(in NIS millions | 3 months ended | | 9 months ended | |
|except per share | September 30 |Change | September 30 |Change |
|data) +------+-------------+ % +------+------------+ % |
|(Unaudited) | 2017 | 2016 | | 2017 | 2016 | |
+---------------------+------+-------------+-------+------+------------+-------+
|Property rental | | | | | | |
|income | 718 | 699 |2.7 % |2,105 | 2,129 |(1.1 %)|
+---------------------+------+-------------+-------+------+------------+-------+
|NOI | 516 | 490 |5.3 % |1,483 | 1,487 |(0.3 %)|
+---------------------+------+-------------+-------+------+------------+-------+
|NOI adjusted for | | | | | | |
|exchange rates | 516 | 483 |6.8 % |1,483 | 1,413 | 5.0 % |
+---------------------+------+-------------+-------+------+------------+-------+
|Economic FFO | 186 | 146 | 27 % | 535 | 426 | 26 % |
+---------------------+------+-------------+-------+------+------------+-------+
|Economic FFO per | | | | | | |
|share (NIS) | 0.95 | 0.74 | 28 % | 2.74 | 2.18 | 26 % |
+---------------------+------+-------------+-------+------+------------+-------+
|Economic FFO adjusted| | | | | | |
|for exchange rate | 186 | 140 | 33 % | 535 | 388 | 38 % |
+---------------------+------+-------------+-------+------+------------+-------+
|Economic FFO per | | | | | | |
|share adjusted for | | | | | | |
|exchange rate (NIS) | 0.95 | 0.71 | 34 % | 2.74 | 1.99 | 37 % |
+---------------------+------+-------------+-------+------+------------+-------+
|Fair value gain | | | | | | |
|(loss) from | | | | | | |
|investment property | | | | | | |
|and investment | | | | | | |
|property under | | | | | | |
|development, net |(101) | (22) | - | (57) | 109 | - |
+---------------------+------+-------------+-------+------+------------+-------+
|Net income (loss) | | | | | | |
|attributable to | | | | | | |
|equity holders of the| | | | | | |
|company |(185) | 381 | - | (90) | 200 | - |
+---------------------+------+-------------+-------+------+------------+-------+
|Diluted net income | | | | | | |
|(loss) per share | | | | | | |
|attributable to | | | | | | |
|equity holders of the| | | | | | |
|Company (NIS) |(0.95)| 1.98 | - |(0.49)| 0.94 | - |
+---------------------+------+-------------+-------+------+------------+-------+
|Increase (decrease) | | | | | | |
|in Shareholder's | | | | | | |
|Equity | 406 | (30) | - |1,262 | 325 | - |
+---------------------+------+-------------+-------+------+------------+-------+
|Increase (decrease) | | | | | | |
|in Shareholder's | | | | | | |
|Equity Per Share | | | | | | |
|(NIS) | 2.3 | (0.1) | - | 6.7 | 1.7 | - |
+---------------------+------+-------------+-------+------+------------+-------+
+------------------------------------------------+-------------+------------+
| (in NIS million except per share data) | 30/09/2017 | 31/12/2016 |
| | (Unaudited) | |
+------------------------------------------------+-------------+------------+
| Shareholder's Equity | 9,420 | 8,158 |
+------------------------------------------------+-------------+------------+
| Shareholder's Equity Per Share (NIS) | 48.4 | 41.7 |
+------------------------------------------------+-------------+------------+
| Net Debt to Total Assets (LTV) (Consolidated) | 53.6% | 50.1% |
+------------------------------------------------+-------------+------------+
| Net Debt to Total Assets (LTV) (Expanded Solo) | 53.9% | 62.0% |
+------------------------------------------------+-------------+------------+
* Economic FFO for the quarter totaled NIS 186 million (US$ 53 million), or
NIS 0.95 per share (US$ 0.27 per share), compared with NIS 146 million (US$
41 million), or NIS 0.74 per share (US$ 0.21 per share), in the same quarter
last year.
* Economic FFO for the nine months ended September 30, 2017 totaled NIS 535
million (US$ 152 million), or NIS 2.74 per share (US$ 0.78 per share),
compared with NIS 426 million (US$ 121 million), or NIS 2.18 per share (US$
0.62 per share), in the same period last year.
* Same property NOI in the nine months ended September 30, 2017 increased
3.6% compared with the same period in the previous year. Excluding Russia,
same property NOI increased 2.3% compared with the same period in the
previous year.
* The occupancy rate as of September 30, 2017 is at 95.3% (95.6% as of
December 31, 2016).
* Investments in acquisitions, developments and redevelopments in the nine
months ended September 30, 2017 totaled NIS 2.2 billion (US$ 623 million).
* As of September 30, 2017, the Company and its subsidiaries had cash, cash
equivalents and undrawn revolving credit facilities in the aggregate amount
of NIS 7.0 billion (US$ 1.98 billion), of which NIS 3.2 billion (US$ 906
million) was at the Company level. In addition, First Capital Realty Inc.
had liquidity including available undrawn credit facilities of NIS 1.8
billion (US$ 0.5 billion).
* Cash flow from operating activities in the quarter totaled NIS 410 million
(US$ 116 million), compared with NIS 564 million (US$ 160 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.
"We are extremely pleased with our quarterly and YTD results that came in better
than expected with consistent growth across all our businesses, private and
public," stated Dori J Segal, Vice Chairman, CEO of Gazit Globe. "We continue to
work very hard in implementing our strategy that we announced in the beginning
of 2016 and remain confident that we can make meaningful progress also in
2018."
Acquisition, Development, Redevelopment and Capital Recycling Activities:
* During the nine months ended September 30, 2017, the Group (excluding
Regency) acquired 8 income producing assets totaling 34,000 sqm, in total
investment of NIS 646 (US$ 183 million), as well as invested NIS 1,561 (US$
442 million) million in development and redevelopment projects.
* As of September 30, 2017, the Group (excluding Regency) had two properties
under development with a gross leasable area (GLA) of 81,000 sqm with total
investment of NIS 1,681 million (US$ 0.47 billion), and 15 properties under
redevelopment with a GLA of 129,000 sqm and a total investment of NIS 3.1
billion (US$ 0.87 billion). The cost to complete the properties under
development and redevelopment totaled NIS 1,864 million (US$ 528 million).
* Subsequent to the quarter end, Gazit Horizons acquired its first asset in
the New York market, a three-level, 92,000-square-foot retail condominium on
Manhattan's upper east side, for US$ 73.25 million.
Financing Activities in Q3 2017:
* The average interest rate in the quarter reflects an average nominal annual
interest of 3.6% 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 average interest at the Gazit-Globe parent level
and its private subsidiaries (expanded solo) is 4.82%.
* The Company will distribute a quarterly cash dividend of NIS 0.35 per share,
payable on January 2, 2018 to shareholders of record as of December
15, 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.
+---------------------+------+------+------------------+-----------------------+
| |1-9/17|6-9/17| Full Year 2017 |Full Year 2017 Updated|
| |Actual|Actual| Previous Guidance| Guidance |
+---------------------+------+------+------------------+-----------------------+
|Economic FFO (NIS in | | | | |
|million) | 535 | 186 | 635 - 649 | 688 - 700 |
+---------------------+------+------+------------------+-----------------------+
|Economic FFO per | | | | |
|share (NIS) | 2.74 | 0.95 | 3.25 - 3.32 | 3.53 - 3.59 |
+---------------------+------+------+------------------+-----------------------+
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 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 Monday,
November 20th, 2017 at 5:00 pm Israel Time / 10:00 am US Eastern Time, to review
the third quarter ended September 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 9180685
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/gazitglobeq3-2017.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 September 30, 2017 Gazit-Globe
owns and operates 130 properties, with a gross leasable area of approximately
2.7 million square meters and a total value of approximately NIS 35.8 billion.
In addition, the Company owns 32.6% of First Capital Realty Inc and 10.9% 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: 20.11.2017 - 12:22 Uhr
Sprache: Deutsch
News-ID 568921
Anzahl Zeichen: 17824
contact information:
Town:
TEL AVIV-YAFO
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 117 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Gazit-Globe Report Third Quarter 2017 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Gazit-Globe (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
