Corporate | 26 March 2014 10:36
DGAP-News: Gazit-Globe /
26.03.2014 / 10:36
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FFO and FFO Per Share Grew in 2013 by 10% and 6% Respectively; Same Property NOI
Grew by 3.4%
TEL-AVIV, Israel, March 26, 2014 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:GZT)
(TSX:GZT) (TASE:GZT), one of the world's leading multi-national real estate
companies focused on acquisition, development and redevelopment of
supermarket-anchored shopping centers in major urban markets, announced today
its financial results for the year and the fourth quarter ended December 31,
2013.
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 year decreased by 2% to NIS 3,457 million (US$ 996 million)
compared to NIS 3,544 million (US$ 1,021 million) in 2012. Excluding the
effect of changes in exchange rates, the NOI increased by 4% compared to
2012
-- FFO for the year increased by 10% to NIS 585 million (US$ 169 million), or
NIS 3.41 per share (US$ 0.98), compared to NIS 533 million (US$ 154
million), or NIS 3.23 per share (US$ 0.93), in 2012
-- Investments during the year totaled NIS 3.0 billion (US$ 0.9 billion) (NIS
6.9 billion (US$ 2.0 billion), assuming consolidation of jointly controlled
companies that are presented according to the equity method). The group
also recycled capital from the divestiture of non-core assets in the amount
of NIS 2.1 billion (US$ 0.6 billion) (NIS 2.2 billion (US$ 0.6 billion),
assuming consolidation of jointly controlled companies that are presented
according to the equity method)
-- Same Property NOI for the year, excluding the effect of changes in exchange
rates, grew by 3.4% compared to 2012
-- Occupancy rate as of December 31, 2013 was 95.0%, similar to occupancy rate
as of December 31, 2012
-- Shareholders' equity as of December 31, 2013 totaled NIS 8,009 million (US$
2,307 million), or NIS 45.6 per share (US$ 13.14), compared to NIS 7,849
million (US$ 2,261 million), or NIS 47.5 per share (US$ 13.68), as of
December 31, 2012
-- EPRA NAV per share as of December 31, 2013 was NIS 58.3 (US$ 16.80)
compared to NIS 60.7 per share (US$ 17.49) as of December 31, 2012
-- As of December 31, 2013, the Group had liquid assets and unutilized
revolving credit facilities in the amount of NIS 9.6 billion (US$ 2.8
billion) of which NIS 3.5 billion (US$ 1.0 billion) is at the Company
level. A jointly controlled company has additional NIS 1.5 billion (US$ 0.4
billion) in cash
-- As of December 31, 2013, net debt to total assets (LTV) was 55.0%, compared
to 56.1% as of December 31, 2012
-- The Company's Board of Directors declared a quarterly cash dividend of NIS
0.45 per share payable on April 23, 2014 to shareholders of record as of
April 7, 2014, which represents an annualized dividend per share of NIS
1.80
Roni Soffer, President of Gazit-Globe: 'We have concluded a very positive year
for the group with strong growth in FFO and FFO per share and 3.4% growth in
same-property NOI. We continued to reduce our leverage, increase our financial
liquidity, which reached a level of NIS 9.6 billion, and execute our business
strategy of improving our portfolio's quality through the acquisition and
development of prime real estate in growing urban markets. We also continued to
recycle capital through the disposition of non-core assets while taking
advantage of investment opportunities in the real estate markets in which we
operate across the globe.'
Some historical numbers were retroactively adjusted due to new accounting
standards
Exchange rate as of December 31, 2013 of 1 USD = 3.471 NIS
Financial Highlights for 2013:
-- Rental income decreased by 2% to NIS 5,146 million compared to NIS 5,249
million in 2012. Excluding the effect of changes in exchange rates, rental
income increased by 4% compared to 2012
-- NOI for the year decreased by 2% to NIS 3,457 million compared to NIS 3,544
million in 2012. Excluding the effect of changes in exchange rates, NOI
increased by 4% compared to 2012
-- Same-property NOI, excluding the effect of changes in exchange rates, grew
by 3.4%, resulting from an increase of 2.9% in the same-property NOI from
North America, a 3.9% increase in same-property NOI from Europe and a 3.6%
increase in same-property NOI from Israel
-- FFO for the year increased by 10% to NIS 585 million, or NIS 3.41 per
share, compared to NIS 533 million, or NIS 3.23 per share, in 2012
-- Net income attributable to the Company's shareholders for the year totaled
NIS 977 million, or NIS 5.64 per share, compared to NIS 957 million, or NIS
5.59 per share, in 2012
-- Occupancy rate as of December 31, 2013 was 95.0%, similar to Occupancy rate
as of December 31, 2012. Occupancy rate as of December 31, 2013 was 94.2%
in North America, 96.4% in Europe and 97.1% in Israel
-- The fair value gain from investment property and investment property under
development was NIS 933 million compared to NIS 1,913 million in 2012
-- Shareholders' equity as of December 31, 2013 totaled NIS 8,009 million, or
NIS 45.6 per share, compared to NIS 7,849 million, or NIS 47.5 per share,
as of December 31, 2012. The effect of changes in the exchange rates of the
US Dollar, Canadian Dollar, Euro and Brazilian Real against the NIS
(adjusted for currency SWAP transactions) resulted in a decrease of
Shareholders' equity by NIS 722 million (NIS 4.1 per share)
-- Cash flow from operating activities totaled NIS 1,218 million, compared to
NIS 1,393 million in 2012
Financial Highlights for the three months ended December 31, 2013:
-- Rental income decreased by 7% to NIS 1,269 million compared to NIS 1,370
million in the fourth quarter of 2012. Excluding the effect of changes in
exchange rates, rental income decreased by 1% compared to the fourth
quarter of 2012
-- NOI decreased by 6% to NIS 855 million compared to NIS 911 million in the
fourth quarter of 2012. Excluding the effect of changes in exchange rates,
NOI remained stable compared to the fourth quarter of 2012
-- FFO increased by 7% to NIS 147 million, or NIS 0.84 per share, compared to
NIS 137 million, or NIS 0.83 per share, in the fourth quarter of 2012
-- Net income attributable to the Company's shareholders totaled NIS 238
million, or NIS 1.34 per share, compared to NIS 224 million, or NIS 1.34
per share, in the fourth quarter of 2012
-- Cash flow from operating activities totaled NIS 646 million, compared to
NIS 430 million in the fourth quarter of 2012
-- The fair value gain from investment property and investment property under
development was NIS 429 million, compared to NIS 441 million in the fourth
quarter of 2012
-- The effect of changes in the exchange rates of the US Dollar, Canadian
Dollar, Euro and Brazilian Real against the NIS (adjusted for currency SWAP
transactions) resulted in a decrease of Shareholders' equity by NIS 220
million (NIS 1.3 per share)
Acquisition, Development and Redevelopment Activities:
-- During 2013 the Group invested NIS 3.0 billion acquiring 11
income-producing properties totaling 73 thousand square meters and adjacent
land parcels for future development in a total amount of NIS 1.4 billion
and an amount of NIS 1.6 billion in new development and redevelopment
projects
-- During the year, Citycon completed the acquisition of the Kista Galleria
shopping center in Stockholm, Sweden, together with a JV partner (50%) for
approximately EUR 530 million. In addition, during 2013ATR invested NIS 1.3
billion in property acquisitions, development and redevelopment
-- During the year the group sold non-core properties for a total amount of
NIS 2.1 billion
-- As of December 31, 2013, the Group had 10 properties under development with
a gross leasable area of 204 thousand square meters and 27 properties under
redevelopment with a gross leasable area of 358 thousand square meters with
a total investment of NIS 5.1 billion. The additional cost to complete the
properties under development and redevelopment totals NIS 1.4 billion
Financing Activities:
-- During 2013, the Group raised NIS 1 billion in equity and NIS 7.7 billion
in debentures and convertible debentures (including ATR). The debentures
were issued with an average maturity of 8.3 years and average nominal
interest rate of 4.08%
-- The average cost of debt during 2013 was 4.9% compared to 5.1% during 2012
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 Wednesday,
March 26, 2014 at 5:00 pm Israel Time / 3:00 pm Central European Time / 11:00
am Eastern Time, to review the fourth quarter and year-end 2013 financial
results. Shareholders, analysts and other interested parties can access the
conference call by dialing 1 877 280 2296 (U.S./Canada) or 0800 279 4977 (U.K.)
or +44 (0) 20 3427 1917 (International) or 1809 212 923 (Israel), or on the
Company's website www.gazit-globe.com. (Conference ID 2722093)
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 577 properties in more than 20 countries,
with a gross leasable area of approximately 6.6 million square meters and a
total value of more than US$22 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 2013 Annual Report. For our full 2013
Annual Report in English, please go to
http://www.gazitglobe.com/financial-reports.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
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December 31,
----------------
2013 2012
----------------
NIS in millions
----------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,018 1,683
Short-term investments and loans 504 538
Marketable securities 100 101
Financial derivatives 39 81
Trade receivables 831 744
Other accounts receivable 298 216
Inventory of buildings and apartments for sale 703 712
Income taxes receivable 19 15
----------------
3,512 4,090
Assets classified as held for sale 611 1,482
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4,123 5,572
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NON-CURRENT ASSETS
Equity-accounted investees 5,919 4,713
Other investments, loans and receivables 659 713
Available-for-sale financial assets 435 339
Financial derivatives 769 929
Investment property 53,309 55,465
Investment property under development 2,479 2,806
Non-current inventory 23 23
Fixed assets, net 160 187
Intangible assets, net 106 117
Deferred taxes 106 198
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63,965 65,490
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68,088 71,062
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
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December 31,
----------------
2013 2012
----------------
NIS in millions
----------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Credit from banks and others 257 351
Current maturities of non-current liabilities 2,914 2,382
Financial derivatives 32 12
Trade payables 936 914
Other accounts payable 1,253 1,256
Advances from customers and buyers of apartments 259 257
Income taxes payable 34 52
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5,685 5,224
Liabilities attributed to assets held for sale 73 168
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5,758 5,392
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NON-CURRENT LIABILITIES
Debentures 22,231 18,500
Convertible debentures 1,221 1,197
Interest-bearing loans from financial institutions and others 12,692 19,433
Financial derivatives 169 472
Other liabilities 198 353
Deferred taxes 3,000 3,066
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39,511 43,021
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EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital 229 219
Share premium 4,288 3,805
Retained earnings 5,378 4,699
Foreign currency translation reserve (2,006) (913)
Other reserves 141 60
Loans granted for purchase of Company's shares *) -- --
Treasury shares (21) (21)
----------------
8,009 7,849
Non-controlling interests 14,810 14,800
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Total equity 22,819 22,649
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68,088 71,062
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*) Represents an amount of less than NIS 1 million.
CONSOLIDATED STATEMENTS OF INCOME
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-
Year ended
December 31,
--------------------------
2013 2012 2011
--------------------------
NIS in millions (except
for per
share data)
--------------------------
Rental income 5,146 5,249 4,718
Property operating expenses 1,689 1,705 1,522
--------------------------
Net operating rental income 3,457 3,544 3,196
--------------------------
Revenues from sale of buildings, land and 1,794 1,749 1,001
construction works performed
Cost of buildings sold, land and construction works 1,667 1,665 967
performed
--------------------------
Gross profit from sale of buildings, land and 127 84 34
construction works performed
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Total gross profit 3,584 3,628 3,230
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Fair value gain from investment property and 933 1,913 1,670
investment property under development, net
General and administrative expenses (582) (648) (733)
Other income 218 164 115
Other expenses (74) (47) (110)
Company's share in earnings of equity-accounted 161 299 334
investees, net
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Operating income 4,240 5,309 4,506
Finance expenses (2,185) (2,214) (2,197)
Finance income 549 120 72
--------------------------
Income before taxes on income 2,604 3,215 2,381
Taxes on income 294 681 328
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Net income 2,310 2,534 2,053
==========================
Attributable to:
Equity holders of the Company 977 957 719
Non-controlling interests 1,333 1,577 1,334
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2,310 2,534 2,053
==========================
Net earnings per share attributable to equity holders
of the Company:
Basic net earnings 5.70 5.80 4.65
==========================
Diluted net earnings 5.64 5.59 4.30
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FFO (EPRA Earnings)
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-
The table below presents the calculation of the Company's FFO, computed
according to the directives of EPRA and the guidelines of the Israel
Securities Authority, and its FFO per share for the stated periods:
For the For the 3
year ended months ended
December 31 December 31
--------------------------------------------
2013 2012 2011 2013 2012
--------------------------------------------
NIS in millions (except per share data)
--------------------------------------------
Net income attributable to equity 977 957 719 238 224
holders of the Company for the
period
Adjustments:
Fair value gain from investment (933) (1,913) (1,670) (429) (441)
property and investment property
under development, net
Capital loss on sale of investment 52 5 63 13 8
property
Impairment of goodwill -- -- 38 -- --
Changes in the fair value of (435) (36) 179 (143) (147)
financial instruments, including
derivatives, measured at fair
value through profit or loss
Adjustments with respect to 60 (43) (131) 54 77
companies presented according to
the equity method
Loss from decrease in interest in 11 4 1 1 1
affiliates
Deferred taxes and current taxes 272 668 324 170 228
with respect to disposal of
properties
Gain from bargain purchase (173) (134) (102) -- --
Acquisition costs recognized in 10 26 21 5 6
profit or loss
Loss (gain) from early redemption 142 147 14 (3) 132
of interest-bearing liabilities
and financial derivatives
Non-controlling interests' share in 368 685 646 227 83
above adjustments
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Nominal FFO 351 366 102 133 171
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Additional adjustments:
CPI and exchange rate linkage 152 94 133 (11) (40)
differences
Depreciation and amortization 16 16 15 4 4
Adjustments with respect to 27 2 67 13 (13)
companies presented according to
the equity method
Other adjustments(1) 39 55 88 8 15
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FFO according to the management 585 533 405 147 137
approach
============================================
FFO according to the management 3.42 3.23 2.62 0.84 0.83
approach per share (in NIS)
============================================
FFO according to the management 3.41 3.23 2.62 0.84 0.83
approach per share (diluted) (in
NIS)
============================================
Number of shares used in the basic 171,103 164,912 154,456 175,787 165,136
FFO per share calculation(2) (in
thousands)
============================================
Number of shares used in the 171,413 165,016 154,783 176,092 165,354
diluted FFO per share
calculation(2) (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
arising from non-recurring payments relating to the termination of engagements
with senior Group officers, as well as income and expenses from operations not
related to income-producing property. Also, with regard to 2011, the data
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.
(2) Weighted average for the period.
CONTACT: Gazit-Globe Ltd.
1 HaShalom Rd.
Tel Aviv, Israel 67892
+972 3 694 8000
For additional information:
Gil Kotler,
Senior Executive VP and CFO
News Source: NASDAQ OMX
End of Corporate News
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26.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Gazit-Globe
Israel
ISIN: PAL0605071A3
End of News DGAP News-Service
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259647 26.03.2014