Corporate | 28 March 2012 10:50
Gazit-Globe
28.03.2012 10:50
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Total investments of NIS 9.6 billion during 2011
NOI & FFO grew by 15% and 13% respectively, Same Property NOI grew by 4.0%
TEL-AVIV, Israel, March 28, 2012 (GLOBE NEWSWIRE) -- Gazit-Globe (TASE:GLOB),
one of the world's leading multi-national real estate companies focused on
acquisition, development and redevelopment of supermarket-anchored shopping
centers announced today its financial results for the three and twelve months
ended December 31, 2011.
When using the term 'Group', results refer to Gazit-Globe's consolidated
financial statements. When using the term 'Company', results refer to
Gazit-Globe's solo financial statements. Unless otherwise stated, results
announced in this press release are attributable to the 'Group'.
Highlights:
-- NOI for the year increased by 15% to NIS 3,509 million compared to NIS
3,058 million in 2010
-- FFO for the year increased by 13% to NIS 405 million (NIS 2.62 per share)
as compared to NIS 359 million (NIS 2.54 per share) in 2010
-- Investments during the year totaled NIS 9,600 million, compared to NIS
3,574 million in 2010
-- Net income attributable to the Company's shareholders for the year totaled
NIS 626 million (NIS 3.75 per share) compared to NIS 790 million (NIS 5.57
per share) in 2010
-- The Group's same-property NOI grew by 4.0% compared to 2010 and occupancy
rate increased to 94.3% as of December 31, 2011 compared to 93.9% as of
December 31, 2010
-- Shareholders' equity as of December 31, 2011 totaled NIS 7,136 million (NIS
43.3 per share), as compared to NIS 5,915 billion (NIS 38.3 per share) on
December 31, 2010
-- EPRA NAV per share as of December 31, 2011 was NIS 49.4 compared to NIS
38.6 per share as of December 31, 2010
-- As of December 31, 2011, the Group had cash on hand and unutilized
revolving credit facilities in the amount of NIS 8.3 billion of which NIS
2.0 billion are at the Company's level
-- As of December 31, 2011, net debt to total assets (LTV) was 58.0%, as
compared to 60.7% as of December 31, 2010. During the year, Midroog
(Moody's Subsidiary) upgraded the Company's domestic credit rating to Aa3
with a stable outlook. S&P Maalot affirmed Gazit-Globe's domestic
credit rating of ilA+ and upgraded its outlook from stable to positive
-- In December 2011, the Company completed an IPO in the United States, on the
NYSE, of 10.35 million shares for total gross proceeds of $93 million
(Approx. NIS 350 million)
-- The Company's Board of Directors declared a quarterly cash dividend of NIS
0.40 per share payable on April 23, 2012 to shareholders of record as of
April 9, 2012. The quarterly cash dividend of NIS 0.40 per share represents
an annualized amount of NIS 1.60
Roni Soffer, President of Gazit-Globe: 'We are very pleased to conclude another
busy and productive year with significant new investments amounting to more
than NIS 9.5 billion. Our acquisitions were focused on A-quality assets in
large, supply-constrained cities with strong demographics in the U.S., Canada
and Europe. We have increased our liquidity and our ability to quickly take
advantage of opportunities, large and small, as they arise, all while upgrading
the quality of our portfolio, in line with the Group's strategy. We have also
improved our credit rating and lowered our LTV ratio to its lowest level since
early 2008. We believe that the steps we took over the last year provide a
solid basis for future growth and strengthen our position as a leading company
in the international real estate market. The completion of Gazit-Globe's IPO in
the United States and the listing of its shares on the NYSE at the end of the
year mark a significant milestone in the Company's growth plans over the next
decade.'
Financial Highlights for the twelve months ended December 31, 2011:
-- Rental income increased by 14% to NIS 5,239 million compared to NIS 4,596
million in 2010
-- NOI increased by 15% to NIS 3,509 million compared to NIS 3,058 million in
2010
-- FFO increased by 13% to NIS 405 million (NIS 2.62 per share) as compared to
NIS 359 million (NIS 2.54 per share) in 2010
-- Net income attributable to the Company's shareholders totaled NIS 626
million (NIS 3.75 per share) compared to NIS 790 million (NIS 5.57 per
share) in 2010
-- Cash flow from operating activities totaled NIS 1,190 million, compared to
NIS 782 million in 2010
-- Same-property NOI grew by 4.0%, resulting from an increase of 2.0% in the
same-property NOI from North America, a 6.3% increase in same-property NOI
from Europe and a 7.2% increase in same-property NOI from Israel
-- Total occupancy rate as of December 31, 2011 increased to 94.3% from 93.9%
as of December 31, 2010. Occupancy rate as of December 31, 2011 was 93.5%
in North America, 96.3% in Europe and 99.0% in Israel
-- The fair value gain from investment property and investment property under
development was NIS 1,803 million compared to NIS 1,017 million in 2010
Financial Highlights for the three months ended December 31, 2011:
-- Rental income increased by 18% to NIS 1,392 million compared to NIS 1,184
million in the fourth quarter 2010
-- NOI increased by 19% to NIS 939 million compared to NIS 791 million in the
fourth quarter 2010
-- Proportional consolidated NOI increased by 23% to NIS 526 million, compared
to NIS 429 million in the fourth quarter 2010
-- FFO increased by 5% to NIS 111 million (NIS 0.71 per share) as compared to
NIS 106 million (NIS 0.72 per share) in the fourth quarter 2010
-- Net income attributable to the Company's shareholders totaled NIS 223
million (NIS 1.27 per share) compared to NIS 226 million (NIS 1.52 per
share) in the fourth quarter 2010
-- Cash flow from operating activities totaled NIS 298 million, compared to
NIS 139 million in the fourth quarter 2010
-- The fair value gain from investment property and investment property under
development was NIS 850 million compared to NIS 343 million in the fourth
quarter 2010
Acquisition, Development and Redevelopment Activities
During the year, the Group acquired 46 income-producing properties totaling 819
thousand square meters and adjacent land parcels for future development in a
total amount of NIS 7,758 million. The Group also invested an amount of NIS
1,842 million in new development and redevelopment projects.
As of December 31, 2011, the Group had 14 properties under development with a
gross leasable area of 178 thousand square meters and 30 properties under
redevelopment with a gross leasable area of 72 thousand square meters with a
total investment value of NIS 1,511 million. The additional cost to complete
the properties under development and redevelopment totals NIS 1,649 million.
Financing Activities
-- During 2011, the Group raised net equity of NIS 1.0 billion, including
approximately NIS 350 million in gross proceeds raised through the issuance
of 10.35 million shares of common stock on the NYSE by the Company, as
compared to NIS 2.2 billion during 2010
-- As of December 31, 2011, the Group had cash on hand and undrawn revolving
credit facilities in the amount of NIS 8.3 billion of which NIS 2.0 billion
are at the Company's level
-- During 2011, Midroog (Moody's Subsidiary) upgraded the Company's domestic
credit rating to Aa3 with a stable outlook. S&P Maalot affirmed
Gazit-Globe's domestic credit rating of ilA+ and upgraded its outlook from
stable to positive
Balance Sheet Highlights
-- As of December 31, 2011, net debt to total assets (LTV) was 58.0%, as
compared to 60.7% as of December 31, 2010
-- Shareholders' equity as of December 31, 2011 totaled NIS 7,136 million (NIS
43.3 per share), after dividends of NIS 240 million in 2011, as compared to
NIS 5,915 billion (NIS 38.3 per share) on December 31, 2010
-- EPRA NAV per share as of December 31, 2011 was NIS 49.4 compared to NIS
38.6 per share as of December 31, 2010
Dividend
-- The Company's Board of Directors declared a quarterly cash dividend of NIS
0.40 per share payable on April 23, 2012 to shareholders of record as of
April 9, 2012. The quarterly cash dividend of NIS 0.40 per share represents
an annualized amount of NIS 1.60
ACCOUNTING AND OTHER DISCLOSURES
The Company believes that publication of 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 FFO provides a better basis
for the 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 property 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.
CONFERENCE CALL/WEB CAST INFORMATION
Gazit-Globe will host a conference call and webcast in English on Wednesday,
March 28, 2011 at 5:00 p.m. Israel Time, 3:00 p.m. United Kingdom/ 5:00 p.m.
Central European Time/ 11:00 a.m. Eastern Time to review fourth quarter and
year-end 2011 financial results. Shareholders, analysts and other interested
parties can access the conference call by dialing 1 866 966 9439 (U.S./Canada)
or 0800 694 0257 (U.K.) or +44 (0) 1452 555 566 (International) or 1 809 216
057(Israel) or on the Company's website www.gazit-globe.com.
For those unable to participate during the call, a replay will be available for
future review on Gazit-Globe's website under Investor Relations.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company's annual report is available on Gazit-Globe
website at www.gazit-globe.com. To be included in the Company's e-mail
distributions for press releases and other Company notices, please send e-mail
addresses to Ms. Avishag Kichel, International Investor Relations, at
akichel@gazitgroup.com.
ABOUT GAZIT-GLOBE
Gazit-Globe is one of the largest owners and operators of supermarket-anchored
shopping centers in the world. In addition, the Company is active in North
America in the healthcare real estate sector. Gazit-Globe is listed on the Tel
Aviv Stock Exchange (TASE:GLOB) and is included in the TA-25 and the
Real-Estate 15 indices in Israel. The Company is also listed on the New York
Stock Exchange (NYSE:GZT). The Group operates properties with a total value of
approximately $18.5 billion in more than 20 countries and owns and operates
over 600 properties with a gross leasable area of approximately 6.8 million
square meters. www.gazit-globe.com.
FORWARD LOOKING STATEMENTS
This release may contain forward-looking statements within the meaning of the
U.S. federal securities laws. 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. Except
as required by 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 2011 Annual Report. For our full 2011
Annual Report in English, please go to
http://www.gazitglobe.com/financial-reports.
Consolidated Statement of Financial Position
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December 31,
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2011 2010
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NIS in
millions
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ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,961 1,321
Short-term investments and loans 807 254
Marketable securities at fair value through profit on loss 97 58
Available-for-sale financial assets 67 42
Financial derivatives 84 111
Trade receivables 714 344
Other accounts receivable 331 245
Inventory of buildings and apartments for sale 1,128 383
Income taxes receivable 18 73
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5,207 2,831
Assets classified as held for sale 714 251
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5,921 3,082
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NON-CURRENT ASSETS
Investments in associates 166 *) 67
Other investments, loans and receivables 408 *) 281
Available-for-sale financial assets 314 218
Financial derivatives 937 1,087
Investment property 54,627 43,634
Investment property under development 3,219 3,296
Non-current inventory 52 17
Fixed assets, net 751 633
Goodwill 101 119
Other intangible assets, net 69 17
Deferred taxes 167 99
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60,811 49,468
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66,732 52,550
===============
*) Reclassified.
The accompanying notes are an integral part of these
consolidated financial statements.
Consolidated Statement of Financial Position
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December 31,
----------------
2011 2010
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NIS in millions
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LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 497 242
Current maturities of non-current liabilities 3,629 3,043
Financial derivatives 25 37
Trade payables 851 515
Other accounts payable 1,340 939
Advances from customers and buyers of apartments 380 80
Income taxes payable 54 38
Dividend payable -- 57
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6,776 4,951
Liabilities attributed to assets held for sale 103 43
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6,879 4,994
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NON-CURRENT LIABILITIES
Debentures 15,782 14,255
Convertible debentures 1,121 788
Interest-bearing loans from financial institutions and others 19,899 14,969
Financial derivatives 353 128
Other financial liabilities 382 214
Employee benefit liability, net 8 4
Deferred taxes 2,924 2,029
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40,469 32,387
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EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital 218 208
Share premium 3,787 3,474
Retained earnings 3,737 3,348
Foreign currency translation reserve (734) (1,312)
Other reserves 149 222
Loans granted to purchase shares of the Company *) -- (4)
Treasury shares (21) (21)
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7,136 5,915
Non-controlling interests 12,248 9,254
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Total equity 19,384 15,169
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66,732 52,550
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*) Represents an amount of less than NIS 1 million.
Consolidated Income Statement
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For the year ended
December 31
--------------------------
2011 2010 2009
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NIS in millions (other
than
net earnings (loss) per
share data)
--------------------------
Rental income 5,239 4,596 4,084
Revenues from sale of buildings, land and contractual 1,257 691 596
works performed
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Total revenues 6,496 5,287 4,680
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Property operating expenses 1,740 1,551 1,369
Cost of buildings sold, land and contractual works 1,199 622 554
performed
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Total cost of revenues 2,939 2,173 1,923
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Gross profit 3,557 3,114 2,757
Fair value gain (loss) from investment property and 1,803 1,017 (1,922)
investment property under development, net
General and administrative expenses (830) (663) (584)
Other income 160 13 777
Other expenses (62) (48) (41)
Group's share in earnings (losses) of associates, net 40 2 (268)
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Operating income 4,668 3,435 719
Finance expenses (2,302) (1,869) (1,793)
Finance income 79 569 1,551
Increase (decrease) in value of financial investments (16) (18) 81
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Profit before taxes on income 2,429 2,117 558
Taxes on income (tax benefit) 545 509 (142)
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Net income 1,884 1,608 700
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Attributable to:
Equity holders of the Company 626 790 1,101
Non-controlling interests 1,258 818 (401)
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1,884 1,608 700
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Net earnings per share attributable to equity holders
of the Company (in NIS)
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Basic net earnings 4.05 5.59 8.49
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Diluted net earnings 3.75 5.57 8.47
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The table below presents the calculation of the Company's FFO, computed
according to the directives of EPRA, and its FFO per share for the stated
periods:
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-
For the year For the 3
ended months ended
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December 31 December 31
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2011 2010 2011 2010
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NIS in millions (other than
per share data)
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Net income attributable to equity holders of the 626 790 226 226
Company for the period
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Adjustments:
Fair value gain from investment property and (1,803) (1,017) (850) (343)
investment property under development, net
Capital loss (gain) on sale of investment 14 (13) 23 1
property and investment property under
development
Impairment of goodwill 38 42 38 41
Changes in the fair value of derivatives 193 (456) 75 (147)
measured at fair value through profit and loss
Adjustments with respect to associates 2 (*)-- (*)-- (6)
Loss (gain) from decrease in holding rate of 1 4 (*)-- (1)
investees
Deferred taxes, current taxes with respect to 531 494 246 222
disposal of properties
Gain from bargain purchase (102) -- (18) --
Acquisition costs recognized in profit and loss 21 21 6 21
Non-controlling interests' share in above 581 241 291 11
adjustments
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Nominal FFO 102 106 34 25
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Additional adjustments:
CPI and exchange rate linkage differences 167 77 8 37
Gain (loss) from early redemption of debentures (4) 1 1 (*)--
Depreciation and amortization 26 69 6 9
Other adjustments 1 114 106 62 35
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FFO according to the management approach 405 359 111 106
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Basic FFO according to the management approach 2.62 2.55 0.71 0.72
per share (in NIS)
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Diluted FFO according to the management approach 2.62 2.54 0.71 0.72
per share (in NIS)
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(*) Represents an amount of less than NIS 1
million.
1 Income and expenses adjusted against the net income for the purpose of
calculating FFO, which include the adjustment of income from the waiver of the
bonus and the compensation with respect to the termination of the employment
agreement of the Chairman of the Board of Directors, expenses and income from
exceptional legal proceedings not related to the reporting periods and also
income and expenses from operations not related to income-producing property.
CONTACT: Gazit-Globe Ltd.
1 HaShalom Rd.
Tel Aviv, Israel 67892
+972 3 694 8000
For additional information:
Gadi Cunia,
Senior Executive VP and CFO
News Source: NASDAQ OMX
28.03.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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Language: English
Company: Gazit-Globe
Panama
Phone:
Fax:
E-mail:
Internet:
ISIN: PAL0605071A3
WKN:
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