Corporate | 23 May 2012 09:03
Gazit-Globe
23.05.2012 09:03
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FFO & FFO Per Share Grew by 42% and 33% Respectively
Same Property NOI Grew by 4.2%
TEL-AVIV, Israel, May 23, 2012 (GLOBE NEWSWIRE) -- Gazit-Globe (TASE:GLOB)
(NYSE:GZT), 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 months
ended March 31, 2012.
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 13% to NIS 935 million compared to NIS 828
million for the same quarter last year
-- FFO for the quarter increased by 42% to NIS 126 million (NIS 0.76 per
diluted share) as compared to NIS 89 million (NIS 0.57 per diluted share)
for the same quarter last year
-- Investments during the quarter totaled NIS 1,150 million, compared to NIS
3,474 million the same quarter last year
-- Net income attributable to the Company's shareholders for the quarter
totaled NIS 260 million (NIS 1.52 per diluted share) compared to a loss of
NIS 14 million (loss of NIS 0.09 per diluted share) for the same quarter
last year
-- Same-property NOI grew by 4.2% compared to the same quarter last year and
occupancy rate was 94.3% compared to 93.9% the same quarter last year
-- Shareholders' equity as of March 31, 2012 totaled NIS 7,396 million (NIS
44.9 per share), compared to NIS 6,123 billion (NIS 39.7 per share) on
March 31, 2011 and NIS 7,309 million (NIS 44.3 per share) as of December
31, 2011
-- EPRA NAV per share as of March 31, 2012 was NIS 51.6 compared to NIS 41.1
per share as of March 31, 2011 and NIS 49.4 as of December 31, 2011
-- As of March 31, 2012, the Group had cash on hand and unutilized revolving
credit facilities of NIS 8.2 billion, of which NIS 1.9 billion are at the
Company's level
-- As of March 31, 2012, net debt to total assets (LTV) was 58.0%, same as on
December 31, 2011 and compared to 61.2% as of March 31, 2011
-- The Company's Board of Directors declared a quarterly cash dividend of NIS
0.40 per share payable on July 3, 2012 to shareholders of record as of June
18, 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 started the year with strong growth
in all operational parameters. During the quarter we saw continued strong
contribution from our investments made over the past 18 months and from the
effective capital allocation which is reflected in our internal and external
growth, we have taken advantage of opportunities both in the private and public
real estate markets while carefully exploring investment opportunities and
continuing to maintain a conservative and strong balance sheet, as we have
always done'.
Financial Highlights for the three months ended March 31, 2012:
-- Rental income increased by 11% to NIS 1,411 million compared to NIS 1,268
million in first quarter 2011
-- NOI increased by 13% to NIS 935 million compared to NIS 828 million in
first quarter 2011
-- Proportional consolidated NOI increased by 19% to NIS 531 million, compared
to NIS 446 million in first quarter 2011
-- FFO increased by 42% to NIS 126 million (NIS 0.76 per diluted share) as
compared to NIS 89 million (NIS 0.57 per diluted share) in first quarter
2011
-- Net income attributable to the Company's shareholders for the quarter
totaled NIS 260 million (NIS 1.52 per diluted share) compared to a loss of
NIS 14 million (loss of NIS 0.09 per diluted share) for the same quarter
last year
-- Cash flow from operating activities totaled NIS 146 million, compared to
NIS 342 million in first quarter 2011. The decrease is mainly due to time
differences with respect to payments to third parties.
-- The fair value gain from investment property and investment property under
development was NIS 321 million compared to NIS 69 million in first quarter
2011
Acquisition, Development and Redevelopment Activities
During the quarter, the Group acquired 5 income-producing properties totaling
32 thousand square meters and adjacent land parcels for future development for
the aggregate amount of NIS 721 million. The Group also invested an amount of
NIS 429 million in development and redevelopment projects.
As of March 31, 2012, the Group had 14 properties under development with a
gross leasable area of 248 thousand square meters and 27 properties under
redevelopment with a gross leasable area of 151 thousand square meters with a
total investment value of NIS 3,089 million. The additional cost to complete
the properties under development and redevelopment totals NIS 1,488 million.
On May 4, 2012 the Company and First Capital Realty ('FCR') have submitted to
Gazit America ('GAA'), who owns medical office and retail properties in Canada
and approximately 12.7% of Equity One's outstanding shares, a non-binding
preliminary proposal to purchase all of the common shares of GAA by Gazit-Globe
and to acquire all of the medical office and retail properties by FCR. The
transaction proposal and consideration are subject to certain approval
processes and other customary conditions. Assuming acceptance of this proposal,
GAA shall be fully owned by Gazit-Globe. The proposed transaction is expected
to close in July 2012.
Financing Activities
-- During the first quarter of 2011, the Group raised net equity of NIS 131
million
-- As of March 31, 2012, the Group had cash on hand and unutilized revolving
credit facilities of NIS 8.2 billion, of which NIS 1.9 billion are at the
Company's level
Balance Sheet Highlights
-- As of March 31, 2012, net debt to total assets (LTV) was 58.0%, same as on
December 31, 2011 and compared to 61.2% as of March 31, 2011
-- Shareholders' equity as of March 31, 2012 totaled NIS 7,396 million (NIS
44.9 per share), compared to NIS 6,123 billion (NIS 39.7 per share) on
March 31, 2011 and NIS 7,309 million (NIS 44.3 per share) as of December
31, 2011
-- EPRA NAV per share as of March 31, 2012 was NIS 51.6 compared to NIS 41.1
per share as of March 31, 2011 and NIS 49.4 as of December 31, 2011
Dividend
-- The Company's Board of Directors declared a quarterly cash dividend of NIS
0.40 per share payable on July 3, 2012 to shareholders of record as of June
18, 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,
May 23, 2012 at 5:00 p.m. Israel Time, 3:00 p.m. United Kingdom/ 4:00 p.m.
Central European Time/ 10:00 a.m. Eastern Time to review the first quarter
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 $19.0 billion in more than 20 countries and owns and operates
over 600 properties with a gross leasable area of approximately 6.7 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 first quarter report. For the full report
in English, please go to http://www.gazitglobe.com/financial-reports.
Consolidated Statement of Financial Position
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-
March 31, December
31,
----------------
2012 2011 2011
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Unaudited Audited
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NIS in millions
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents 1,349 1,356 1,961
Short-term investments and loans 513 205 807
Marketable securities at fair value through profit 202 40 97
or loss
Available-for-sale financial assets 36 56 67
Financial derivatives 90 105 84
Trade receivables 713 392 714
Other accounts receivable 316 345 331
Inventory of buildings and apartments for sale 1,120 473 1,128
Income taxes receivable 20 37 18
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4,359 3,009 5,207
Assets classified as held for sale 1,040 830 714
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5,399 3,839 5,921
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NON-CURRENT ASSETS:
Investments in associates 177 *) 79 166
Other investments, loans and receivables 421 *) 290 408
Available-for-sale financial assets 305 202 314
Financial derivatives 890 1,012 937
Investment property 54,616 47,220 54,627
Investment property under development 3,854 3,148 3,219
Non-current inventory 54 18 52
Fixed assets, net 733 626 751
Goodwill 100 143 101
Other intangible assets, net 55 13 69
Deferred taxes 194 83 167
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61,399 52,834 60,811
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66,798 56,673 66,732
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*) Reclassified.
The accompanying notes are an integral part of these
interim consolidated financial statements.
Consolidated Statement of Financial Position
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-
March 31, December
31,
--------------------
2012 2011 2011
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Unaudited Audited
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NIS in millions
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LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 366 189 497
Current maturities of non-current liabilities 3,116 2,921 3,629
Financial derivatives 5 20 25
Trade payables 767 517 851
Other accounts payable 1,377 984 1,340
Advances from customers and buyers of apartments 289 98 380
Income taxes payable 54 51 54
Dividend payable 66 60 -
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6,040 4,840 6,776
Liabilities attributed to assets held for sale 167 298 103
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6,207 5,138 6,879
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NON-CURRENT LIABILITIES
Debentures 16,194 15,174 15,782
Convertible debentures 1,381 753 1,121
Interest-bearing loans from financial 19,616 16,737 19,899
institutions and others
Financial derivatives 332 89 353
Other financial liabilities 411 240 382
Employee benefit liability, net 7 4 8
Deferred taxes 2,729 *) 2,041 *) 2,584
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40,670 35,038 40,129
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EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital 218 208 218
Share premium 3,787 3,481 3,787
Retained earnings 4,097 *) 3,353 *) 3,903
Foreign currency translation reserve (820) *) (1,141) *) (728)
Other reserves 135 *) 247 *) 150
Loans granted to purchase shares of the Company **) - (4) **) -
Treasury shares (21) (21) (21)
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7,396 *) 6,123 *) 7,309
Non-controlling interests 12,525 *) 10,374 *) 12,415
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Total equity 19,921 *) 16,497 *) 19,724
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66,798 56,673 66,732
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*) Retroactively adjusted due to amendment to IAS 12.
**) Represents an amount of less than NIS 1 million.
Consolidated Income Statement
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Three months Year
ended ended
March 31, December
31,
------------------
2012 2011 2011
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Unaudited Audited
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NIS in millions (except
for per share data)
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Rental income 1,411 1,268 5,239
Revenues from sale of buildings, land and 488 177 1,257
contractual works performed
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Total revenues 1,899 1,445 6,496
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Property operating expenses 479 442 1,740
Cost of buildings sold, land and contractual works 467 165 1,199
performed
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Total cost of revenues 946 607 2,939
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Gross profit 953 838 3,557
Fair value gain from investment property and 321 69 1,803
investment property under development, net
General and administrative expenses (179) (174) (830)
Other income 87 70 160
Other expenses (3) (3) (62)
Group's share in earnings (losses) of associates, 2 (6) 40
net
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Operating income 1,181 794 4,668
Finance expenses (526) (591) (2,302)
Finance income 52 53 79
Decrease in value of financial investments (1) (5) (16)
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Profit before taxes on income 706 251 2,429
Taxes on income 137 *) 55 *) 373
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Net income 569 *) 196 *) 2,056
===========================
Attributable to:
Equity holders of the Company 260 *) (14) *) 713
Non-controlling interests 309 *) 210 *) 1,343
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569 *) 196 *) 2,056
===========================
Net earnings (loss) per share attributable to equity
holders of the Company (NIS):
Basic net earnings (loss) 1.58 *) (0.09) *) 4.59
===========================
Diluted net earnings (loss) 1.52 *) (0.09) *) 4.24
===========================
*) Retroactively adjusted due to amendment to IAS
12.
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 3 For the
months year
ended ended
March 31 Decembe
r 31
-----------------
2012 2011 2011
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NIS in millions (other
than per share data)
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Net income (loss) attributable to equity holders 260 (*) (14) (*) 713
of the Company for the period
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Adjustments:
Fair value gain from investment property and (321) (69) (1,803)
investment property under development, net
Capital loss (gain) on sale of investment 2 (1) 14
property and investment property under
development
Impairment of goodwill - - 38
Changes in the fair value of derivatives measured 21 88 193
at fair value through profit and loss
Adjustments with respect to associates (1) (**) - 2
Loss (gain) from decrease in holding rate of - (**) - 1
investees
Deferred taxes, current taxes with respect to 132 (*) 48 (*) 444
disposal of properties
Gain from bargain purchase (82) - (102)
Acquisition costs recognized in profit and loss 3 8 21
Non-controlling interests' share in above 112 17 581
adjustments
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Nominal FFO 126 77 102
=========================
Additional adjustments:
CPI and exchange rate linkage differences (23) 34 167
Gain (loss) from early redemption of 2 (17) (4)
interest-bearing liabilities
Depreciation and amortization 7 8 26
Other adjustments 1 14 (13) 114
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FFO according to the management approach 126 89 405
=========================
Basic FFO according to the management approach 0.77 0.57 2.62
per share (in NIS)
=========================
Diluted FFO according to the management approach 0.76 0.57 2.67
per share (in NIS)
=========================
(*) Retroactively adjusted due to the amendment
to IAS 12
(**) 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 expiration 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, expenses
arising from termination of the engagement of senior Group employees 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
23.05.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Gazit-Globe
Panama
Phone:
Fax:
E-mail:
Internet:
ISIN: PAL0605071A3
WKN:
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