- ISIN PAL0605071A3
Gazit-Globe
Gazit-Globe Reports First Quarter 2015 Financial Results
DGAP-News: Gazit-Globe
2015-05-31 / 10:45
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FFO Grew by 6% to NIS 160 Million; Net Debt to Total Assets (LTV) Declined to
49.3%
TEL-AVIV, Israel, 2015-05-31 10:45 CEST (GLOBE NEWSWIRE) -- Gazit-Globe
(NYSE:GZT) (TSX:GZT) (TASE:GZT), one of the world's leading multi-national real
estate companies focused on the management, acquisition, development and
redevelopment of supermarket-anchored shopping centers in major urban markets,
announced today its financial results for the first quarter ended March 31,
2015.
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 increased by 26% to NIS 1,028 million (US$ 258 million)
compared to NIS 817 million (US$ 205 million) in the same quarter last
year. The increase results from the consolidation of Atrium's financial
reports for the first time which resulted in an increase of NIS 218 million
(US$ 55 million) in the NOI
-- FFO for the quarter increased by 6% to NIS 160 million (US$ 40 million), or
NIS 0.90 per share (US$ 0.23), compared to NIS 151 million (US$ 38
million), or NIS 0.86 per share (US$ 0.22), in same quarter last year. The
number of shares grew by 1% between the periods
-- Investments during the quarter totaled NIS 861 million (US$ 216 million).
The group also recycled capital from the divestiture of non-core assets in
the amount of NIS 665 million (US$ 167 million)
-- Same Property NOI for the quarter, excluding the effect of changes in
exchange rates, decreased by 0.9% compared to same quarter last year.
Occupancy rate as of March 31, 2015 was 95.6% compared to 95.3% as of March
31, 2014
-- Shareholders' equity as of March 31, 2015 totaled NIS 7,842 million (US$
1,970 million), or NIS 44.0 per share (US$ 11.06 per share), compared to
NIS 7,789 million (US$ 1,957 million), or NIS 44.3 per share (US$ 11.13 per
share), as of March 31, 2014
-- EPRA NAV per share as of March 31, 2015 was NIS 59.1 (US$ 14.85) compared
to NIS 56.8 per share (US$ 14.27) as of March 31, 2014
-- As of March 31, 2015, the Group had liquid assets and unutilized revolving
credit facilities in the amount of NIS 13.0 billion (US$ 3.3 billion) of
which NIS 3.2 billion (US$ 0.8 billion) is at the Company level
-- As of March 31, 2015, net debt to total assets (LTV) was 49.3%, compared to
55.5% as of March 31, 2014
-- The Company declared a quarterly cash dividend of NIS 0.46 per share
payable on July 6, 2015 to shareholders of record as of June 22, 2015,
which represents an annualized dividend per share of NIS 1.84. The dividend
policy for 2015 is a minimum quarterly dividend payment of NIS 0.46 per
share, representing an increase of 2.2% over the 2014 dividend.
-- After the quarter ended, Gazit-Globe's subsidiary, Citycon (42.8%), entered
into an agreement to purchase all of the shares of Norway's second largest
commercial real estate company, Sektor Gruppen, for consideration amounting
to approximately EUR 1.47 billion subject to customary balance sheet and
post-closing adjustments. The consideration will be paid in cash
(approximately EUR 541 million) and by the assumption of debt
Roni Soffer, President of Gazit-Globe: 'We are pleased to conclude a strong
quarter in which we experienced continued growth in our activities. Recently,
we announced a major, strategic transaction in which Citycon will acquire
Norway's second-largest shopping center company for EUR 1.47 billion. Citycon
will become the largest publicly-listed shopping center company in the Nordic
region and the third largest in continental Europe. This strategic transaction
alongside the constant upgrading of the Company's portfolio around the world,
has positioned the Group well for continued long-term growth.'
Financial Highlights for the three months ended March 31, 2015:
-- Rental income increased by 24% to NIS 1,527 million compared to NIS 1,227
million in the same quarter last year. The increase results from the
consolidation of Atrium's financial reports for the first time which
resulted in an increase of NIS 311 million in the rental income.
-- NOI for the quarter increased by 26% to NIS 1,028 million compared to NIS
817 million in the same quarter last year. The increase results from the
consolidation of Atrium's financial reports for the first time which
resulted in an increase of NIS 218 million in the NOI.
-- Same-property NOI, excluding the effect of changes in exchange rates,
decreased by 0.9%, resulting from an increase of 4.6% in the same-property
NOI from Canada, a 2.8% increase in same-property NOI from the US, a 2.4%
increase in same-property NOI from Northern Europe and a 12.8% decrease in
same-property NOI from Central and Eastern Europe.
-- FFO for the quarter increased by 6% to NIS 160 million, or NIS 0.90 per
share, compared to NIS 151 million, or NIS 0.86 per share, in same quarter
last year. The number of shares grew by 1% between the periods.
-- Net income attributable to the Company's shareholders totaled NIS 376
million, or NIS 2.10 per share, compared to net income of NIS 157 million,
or NIS 0.89 per share, in the same quarter last year.
-- Occupancy rate as of March 31, 2015 was 95.6% compared to 95.3% as of March
31, 2014. Occupancy rate as of March 31, 2014 was 95.6% in Canada, 95.2% in
the US, 95.9% in North Europe and 96.7% in Central and Eastern Europe.
-- The fair value gain from investment property and investment property under
development was NIS 107 million compared to NIS 25 million in the same
quarter last year.
-- Shareholders' equity as of March 31, 2015 totaled NIS 7,842 million, or NIS
44.0 per share, compared to NIS 7,789 million, or NIS 44.3 per share, as of
March 31, 2014.
Acquisition, Development, Redevelopment and Capital Recycling Activities:
-- During the first quarter of 2015, the Group invested NIS 861 million,
including one income-producing property totaling 13 thousand square meters
for a total amount of NIS 344 million as well as NIS 517 million in new
development and redevelopment projects. The Group also recycled capital
from the divestiture of non-core assets in the amount of NIS 665 million.
-- As of March 31, 2015, the Group had 8 properties under development with a
gross leasable area of 195 thousand square meters and a total investment of
NIS 1.6 billion, and 20 properties under redevelopment with a gross
leasable area of 311 thousand square meters and a total investment of NIS
3.8 billion. The additional cost to complete the properties under
development and redevelopment totals NIS 2.1 billion.
-- During the first quarter of 2015, Gazit-Globe acquired 52.1 million
ordinary shares of Atrium European Real Estate Limited ('ATR') representing
approximately 13.9% of ATR's issued share capital and voting rights. The
shares were acquired from a consortium managed by CPI CEE Management LLC,
at a price of EUR 4.40 per share, for a total consideration of
approximately EUR 229 million in an off-market transaction. With the
closing of the transaction Gazit-Globe became the sole controlling
shareholder of Atrium and started to consolidate its financial reports.
Financing Activities:
-- During the first quarter of 2015, the Group raised NIS 0.8 billion in
equity. In addition, the Group raised approximately NIS 1.1 billion through
debenture offerings.
-- The average nominal annual cost of debt during the first quarter of 2015,
was 3.5%, compared to 4.3% in the same quarter last year. The decrease is
mainly a result of the negative Israeli CPI in the quarter.
-- The Company declared a quarterly cash dividend of NIS 0.46 per share
payable on July 6, 2015 to shareholders of record as of June 22, 2015,
which represents an annualized dividend per share of NIS 1.84.
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 Monday, June
1, 2015 at 5:00 pm Israel Time / 4:00 pm Central European Time / 10:00 am
Eastern Time, to review the first quarter 2015 financial results. Shareholders,
analysts and other interested parties can access the conference call by dialing
1877 280 1254 (U.S./Canada) or 0800 279 5004 (U.K.) or +44 (0) 20 3427 1907
(International) or 1809 212 925 (Israel), or on the Company's website
www.gazit-globe.com. (Conference ID 5575639)
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. Gazit-Globe owns and operates 448 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$ 19 billion.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company's annual report is available on Gazit-Globe
website at www.gazit-globe.com
Investors Contact: IR@gazitgroup.com, Media Contact: press@gazitgroup.com
Gazit-Globe Headquarters, Tel-Aviv, Israel, Tel: +972 3 6948000 / New York
Office, Tel: +1 212 897 9741
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 Q1 2015 financial report. For our full Q1
2015 report in English, please go to
http://www.gazitglobe.com/financial-reports.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
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-
March 31, December 31,
------------------
2015 2014 2014
--------------------------------
Unaudited Audited
--------------------------------
NIS in millions
--------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 2,991 921 650
Short-term deposits and loans 357 450 368
Marketable securities 45 109 299
Financial derivatives 128 54 90
Trade receivables 582 668 536
Other accounts receivable 389 282 303
Inventory of buildings and apartments for sale 581 727 588
Income taxes receivable 22 20 14
--------------------------------
5,095 3,231 2,848
Assets classified as held for sale 303 931 1,046
--------------------------------
5,398 4,162 3,894
--------------------------------
NON-CURRENT ASSETS
Equity-accounted investees 2,196 5,941 6,213
Other investments, loans and receivables 709 423 564
Available-for-sale financial assets 373 438 383
Financial derivatives 720 838 288
Investment property 65,951 53,114 56,646
Investment property under development 3,119 2,504 1,642
Non-current inventory 2 4 2
Fixed assets, net 201 162 171
Intangible assets, net 100 104 103
Deferred taxes 87 106 78
--------------------------------
73,458 63,634 66,090
--------------------------------
78,856 67,796 69,984
================================
The notes are an integral part of the interim condensed consolidated financial
statements.
March 31, December
31,
------------------
2015 2014 2014
-----------------------------
Unaudited Audited
-----------------------------
NIS in millions
-----------------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 570 506 553
Current maturities of non-current liabilities 2,618 2,441 2,711
Financial derivatives 55 19 59
Trade payables 812 901 900
Other accounts payable 1,597 1,322 1,262
Advances from customers and buyers of 275 273 304
apartments
Income taxes payable 93 32 74
-----------------------------
6,020 5,494 5,863
Liabilities attributed to assets held for sale 17 119 110
-----------------------------
6,037 5,613 5,973
-----------------------------
NON-CURRENT LIABILITIES
Debentures 27,931 22,891 24,433
Convertible debentures 1,162 1,184 1,254
Interest-bearing loans from financial 9,428 12,324 8,552
institutions and others
Financial derivatives 95 177 94
Other liabilities 450 193 190
Deferred taxes 4,331 3,312 3,618
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43,397 40,081 38,141
-----------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY
Share capital 232 229 232
Share premium 4,413 4,295 4,411
Retained earnings 5,209 5,238 4,915
Foreign currency translation reserve (2,162) (2,062) (1,641)
Other reserves 171 110 127
Loans to purchase shares -- (*-- (*--
Treasury shares (21) (21) (21)
-----------------------------
7,842 7,789 8,023
Non-controlling interests 21,580 14,313 17,847
-----------------------------
Total equity 29,422 22,102 25,870
-----------------------------
78,856 67,796 69,984
=============================
*) Represents an amount of less than NIS 1 million.
The notes are an integral part of the interim condensed consolidated financial
statements.
CONSOLIDATED STATEMENTS OF INCOME
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Three months Year
ended ended
March 31, December
31,
--------------
2015 2014 2014
-----------------------
Unaudited Audited
-----------------------
NIS in millions
(except for per share
data)
-----------------------
Rental income 1,527 1,227 4,913
Property operating expenses 499 410 1,584
-----------------------
Net operating rental income 1,028 817 3,329
-----------------------
Revenues from sale of buildings, land and construction 349 331 1,357
works performed
Cost of buildings sold, land and construction works 355 438 1,660
performed
-----------------------
Gross loss from sale of buildings, land and construction (6) (107) (303)
works performed
-----------------------
Total gross profit 1,022 710 3,026
Fair value gain from investment property and investment 107 25 1,053
property under development, net
General and administrative expenses (187) (147) (619)
Other income 4 4 55
Other expenses (502) (5) (81)
Company's share in earnings of equity-accounted 35 78 12
investees, net
-----------------------
Operating income 479 665 3,446
Finance expenses (312) (379) (2,115)
Finance income 618 120 157
-----------------------
Income before taxes on income 785 406 1,488
Taxes on income 58 92 405
-----------------------
Net income 727 314 1,083
=======================
Attributable to:
Equity holders of the Company 376 157 73
Non-controlling interests 351 157 1,010
-----------------------
727 314 1,083
=======================
Net earnings per share attributable to equity holders of
the Company (NIS):
Basic net earnings 2.11 0.89 0.41
=======================
Diluted net earnings 2.10 0.89 0.39
=======================
The notes are an integral part of the interim condensed consolidated financial
statements.
FFO (EPRA Earnings)
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-
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 3 months For the
ended March 31, year
ended
December
31
------------------
2015 2014 2014
---------------------------
NIS in millions (other
than per share data)
---------------------------
Net income attributable to equity holders of the 376 157 73
Company for the period
---------------------------
Adjustments:
Fair value gain from investment property and (107) (25) (1,053)
investment property under development, net
Capital loss on sale of investment property 5 3 65
Changes in the fair value of financial instruments, (575) (98) 156
including derivatives, measured at fair value
through profit or loss
Adjustments with respect to equity-accounted 12 20 324
investees
Loss from decrease and revaluation in and 1,531 1 1
revaluation of holding interest in investee
Deferred taxes and current taxes with respect to 41 100 399
disposal of properties
Gain from bargain purchase (1,065) -- (47)
Acquisition costs recognized in profit or loss 1 1 6
Loss (gain) from early redemption of (1) (3) 154
interest-bearing liabilities and financial
derivatives
Non-controlling interests' share in above 42 1 267
adjustments
---------------------------
Nominal FFO 260 157 345
===========================
Additional adjustments:
CPI and exchange rate linkage differences (142) (57) (5)
Depreciation and amortization 5 4 13
Adjustments with respect to equity-accounted (3) (16) (3)
investees
Other adjustments 40 63 248
---------------------------
FFO according to the management approach 160 151 598
===========================
FFO according to the management approach per share 0.90 0.86 3.39
(basic and diluted) (in NIS)
===========================
Number of shares used in the basic FFO per share 178,414 175,811 176,459
calculation (in thousands)
===========================
Number of shares used in the diluted FFO per share 178,507 176,014 176,546
calculation (in thousands)
===========================
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, expenses
relating to non-recurring payments 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 Dori Group) and
internal leasing costs (mainly salary) incurred in the leasing of properties.
2 Weighted average for the period.
CONTACT: Gazit-Globe Ltd.
1 HaShalom Rd.
Tel Aviv, Israel 67892
+972 3 694 8000
Gil Kotler,
Senior Executive VP and CFO
News Source: NASDAQ OMX
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2015-05-31 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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Language: English
Company: Gazit-Globe
Panama
ISIN: PAL0605071A3
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