From the Wires
Azrieli Group Ltd. Announces Third Quarter Results for 2012
By: PR Newswire
Nov. 21, 2012 03:43 AM
TEL AVIV, Israel, November 21, 2012 /PRNewswire/ --
Reports a 10% increase in NOI, totaling NIS 275 million in Q3/2012
The FFO from real estate activity, totaling NIS 180 million, a 10% increase compared with third quarter 2011
Azrieli Group Ltd. (TASE: AZRG IT) reported today its results for the quarter ending September 30, 2012.
Third Quarter Financial Highlights
1. For details see Section 1.1.6 of the Board of Directors' report as of September 30, 2012. Funds from operations (FFO) are a widely accepted supplemental measure of the performance of income-producing real estate companies and REITs.
Shlomo Sherf, Azrieli Group's CEO: "The quarterly results are good, and reflect growth in all the business parameters. We are continuing to identify investment opportunities and fulfill our long-term commitment to initiation and development in the Israeli market."
1-3 2012 financial results summary:
NIS in millions change Q3 2011 Q3 2012 10% 250 275 NOI 6.1% 244 259 Same property NOI FFO from real estate 10% 164 180 activity 8% 105 113 EPRA NAV per share
1-9 2012 financial results summary:
NIS in millions change 1-9 / 2011 1-9 / 2012 12% 724 812 NOI 3.9% 697 724 Same property NOI FFO from real estate 13% 472 535 activity Change in fair value of income producing real (80%) 463 93 estate 8% 105 113 EPRA NAV per share
Core Business Operations
Third quarter operating results for the shopping centers, offices and others, and the assets in the U.S segments:
Shopping Center Portfolio in Israel
Office Space and Others Portfolio in Israel
Income-Producing Real Estate Portfolio in the U.S.A.
Acquisitions, Development and Redevelopment Activities
After the date of the report, the Company paid the first installment (20%) for the land in the sum of NIS 48 million. Another 25% will be paid on June 15, 2013 and the balance on the handing over date.
The handing over of the lot is scheduled for no later than December 31, 2014. However, the seller may postpone the handing over date by one year, against a predetermined payment. The construction costs (initial estimate) are expected to amount to NIS 700 million.
Balance Sheet (extended standalone) as of 30 September 2012
Granite HaCarmel (100% holding) - Net profit of NIS 38 million in Q3/2012, compared with a net profit of NIS 13 million in Q3/2011 (attributed to the shareholders).
In September 2012, a full tender offer for Granite's publicly-held shares was accepted. As of the Report Release date, Granite is a private company.
Bank Leumi (approx. 4.8% holding) - In Q3/2012, the share value on TASE increased by 17%, a NIS 110 million increase in the Group's holding value in the Bank. Net of tax, the increase was NIS 91 million.
From the end of the quarter until the date of release of the report, the share value increased by 15% representing an increase of NIS 101 million in the Group's holding (net of tax).
Leumi Card (20% holding) - The holding book value as of 30.09.2012 stood at NIS 483 million.
The Company remains committed to its core business objectives:
The Company will hold its quarterly conference call, hosted by the Company's senior management on Wednesday, November 21, 2012 at 16:00 Israel local time (15:00 CET; 14:00 United Kingdom time and 09:00AM New York time). The call will include a review of the Company's Q3/2012 performance, as well as a discussion of the Company's strategy and expectations for the future.
A Question & Answer session will follow the discussion.
To participate, please dial 03-9180664 from Israel, 1-888-281-1167 from the US, 0-800-917-9141 from the UK, 0-800-022-9568 from the Netherlands 1-866-485-2399 from Canada and +972-3-9180664 internationally.
A replay will be available for 2 days by dialing 03-9255925 from Israel, 1-888-295-2634 from the US and Canada 0-800-028-6837 from the UK, 0-800-023-4246 from the Netherlands and +972-3-9255925 internationally.
Access to the presentation will be available through the Company's website at http://www.azrieli.com under "Investor Relations → Presentations."
About Azrieli Group
Azrieli Group Ltd. owns and operates one of Israel's largest portfolios of malls, shopping centers and office properties nationwide. The Company is publicly traded on TASE under the symbol AZRG IT and is included in the TA-25 and TA-real-estate 15 indices. It is the only Israeli stock included in the EPRA Index. As of September 30, 2012, the Company has an equity market capitalization of about $2.5 billion. The Company operates mainly in Israel, and owns and manages properties with a gross leasable area of approx. 718,000 square meters; the Company has interests in 13 shopping centers comprising 256,000 square meters of leasable space across Israel, 8 office properties comprising 282,000 square meters of leasable space across Israel, and 5 properties overseas (mainly in Houston, Texas) comprising 179,000 square meters of leasable space. In addition, the Company has 6 projects under development comprising 325,000 square meters of leasable space in Israel. 90% of the fair value of investment properties and properties under development relates to domestic properties (in Israel). The Group has been specializing in shopping center and office space development, acquisitions, and management for the past 30 years. For further information, please visit the Company's website at http://www.azrieli.com.
Accounting and Other Disclaimers
The Company believes that publication of the FFO, which is calculated according to EPRA best-practice recommendations, better reflects the operating results of the Company, since the Company's financial statements are prepared in conformity with IFRS. In addition, publication of the FFO provides a better basis for a comparison of the Company's operating results between different reporting periods and strengthens the uniformity and the comparability of this financial measure to that published by European real estate companies.
As clarified in the EPRA and NAREIT position papers, the FFO measures do not represent cash flows from current operations 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 (loss). Furthermore, it is also clarified that these measures are not part of the data audited by the Company's independent auditors.
Forward Looking Statements
This press release may contain forward-looking statements relating to Azrieli Group's operations and the environment in which it operates that are based on Azrieli Group's expectations, estimates, forecasts and projections. These statements may be identified by their use of forward-looking terminology such as "believes", "expects", "may", "should", "would", "will", "intends", "plans", "estimates", "anticipates" and similar words. These statements are not guarantees of future performance and involve risks and uncertainties that are impossible to control or predict. Actual outcomes and results may differ materially from those expressed or implied in these forward-looking statements. We refer you to our latest annual report and current interim financial statements, both of which are available on Azrieli Group's website, for a discussion of the risks and uncertainties associated with forward-looking statements. Therefore you should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements speak only as of the date on which such statements are made except as required by laws and regulations. Azrieli Group undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
The Company refers you to the documents filed by the Company from time to time with the Israel Securities Authority, specifically the section titled "Risk Factors" in the Company's Annual Report for the year ended December 31, 2011, as may be updated or supplemented in the Company's immediate filings, which discuss these and other factors that could adversely affect the Company's results.
Please note that this document should not be regarded as a substitute for reading the original Hebrew version of the Company's reports in full. The financial data in this document relates to the solo extended report (unaudited) unless otherwise stated. The full and legal version of the Company's reports, in Hebrew, were released by the Company on November 21st, 2012 and may be reviewed on the Israeli MAGNA website at http://www.magna.isa.gov.il
For Additional Information
Full copies of the Company's financial statements are available on the Azrieli Group's website at http://www.azrieli.com, in the IR (Investor Relations) section. To be included in the Company's e-mail distributions, and to receive press releases, news and other Company notices, please send e-mail addresses to Mr. Moran Goder, Head of Investor Relations, at firstname.lastname@example.org, Tel: +972-3-6081310.
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