TEL-AVIV, Israel, March 16, 2011 (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 months ("the quarter") and twelve months ("the period") ended December 31, 2010.
When referring to "The Group", results refer to Gazit-Globe's consolidated financial statements. When referring to the "The Company", results refer to Gazit-Globe's solo financial statements. Unless stated otherwise, results announced in this press release are attributable to "The Group".
Highlights:
- NOI for the quarter increased by 14% to NIS 791 million compared to NIS 693 million for the same quarter last year.
- FFO for the quarter totaled NIS 106 million (NIS 0.72 per share) as compared to NIS 102 million (NIS 0.75 per share) for the same quarter last year.
- During the quarter, Gazit-Globe raised NIS 650 million (Approx. $180 million) in equity through issuance of common stock.
- Investments during the period totaled NIS 3,574 million, compared to NIS 2,778 million in 2009.
- Net income attributable to the Company's shareholders for the period totaled NIS 790 million (NIS 5.57 per share) compared to net income of NIS 1,101 million (NIS 8.47 per share) for the same period last year. The change is mainly due to the exchange of Atrium's convertible bonds into Atrium's shares in December 2009.
- The Group's same-property NOI grew by 3.6% for the period and occupancy rate remained unchanged at 93.9%.
- The Company's share in the valuation of the fair value of investment property and investment property under development was increased by NIS 579 million in 2010 compared to a decrease of NIS 845 million in 2009.
- As of December 31, 2010, the Group had cash on hand and undrawn revolving credit facilities in the amount of NIS 6.5 billion of which NIS 1.9 billion are at the Company's level.
- As of December 31, 2010, net debt to total assets (LTV) was 60.7%, as compared to 63.7% as of December 31, 2009.
- The Company's Board of Directors declared a quarterly cash dividend of NIS 0.39 per share payable on April 11, 2011 to shareholders of record as of March 29, 2011. The quarterly cash dividend of NIS 0.39 per share represents an annualized rate of NIS 1.56.
"It was another year of continued growth in revenues and NOI, generating significant cash flows while demonstrating the strong momentum of our multinational platform," said Roni Soffer, Gazit-Globe's President. "Development, redevelopment and property acquisition continued at full steam this year as we invested approximately $1 billion in these activities. We strengthened our financial position, raised equity and brought down our leverage. Once again, our unique business model allowed us to simultaneously deploy capital in multiple markets around the world and still stay very focused on our core business and the quality of our new and existing properties. During the year we made important progress upgrading our portfolio, diversifying and enhancing our presence mainly in North America and expanding our footprint in Europe and Brazil."
Financial Highlights for the three months ended December 31, 2010:
- Property rental income for the quarter increased by 13% to NIS 1,184 million compared to NIS 1,050 million for the same quarter last year.
- NOI for the quarter increased by 14%; NOI totaled NIS 791 million compared to NIS 693 million for the same quarter last year.
- FFO for the quarter totaled NIS 106 million (NIS 0.72 per share) as compared to NIS 102 million (NIS 0.75 per share) for the same quarter last year.
- Net income attributable to the Company's shareholders for the quarter totaled NIS 226 million (NIS 1.52 per share) compared to net income of NIS 811 million (NIS 5.89 per share) for the same quarter last year. The change is mainly due to the exchange of Atrium's convertible bonds into Atrium's shares in December 2009.
- Cash flow from operating activities for the quarter totaled NIS 139 million, compared to NIS 122 million for the same quarter last year.
- Occupancy rate as of December 31, 2010 remained unchanged at 93.9%.
- Shareholders' equity as of December 31, 2010 increased to a total NIS 5.9 billion (NIS 38.3 per share), as compared to NIS 5.2 billion (NIS 37.4 per share) as of December 31, 2009.
- EPRA NAV per share as of December 31, 2010 was NIS 38.6 compared to 40.6 per share as of December 31, 2009 (The EPRA NAV for 2009 was calculated based on EPRA's new guidelines published in October 2010).
Financial Highlights for the twelve months ended December 31, 2010:
- Property rental income for the period, increased by 13% to NIS 4,596 million compared to NIS 4,084 million for the same period last year.
- NOI for the period increased by 12% to NIS 3,058 million compared to NIS 2,729 million for the same period last year.
- FFO for the period totaled NIS 359 million (NIS 2.54 per share) as compared to NIS 420 million (NIS 3.24 per share) for the same period last year. The change is mainly due to the exchange of Atrium's convertible bonds into Atrium's shares in December 2009 and the deleveraging steps the Company took during the year.
- Net income attributable to the Company's shareholders for the period totaled NIS 790 million (NIS 5.57 per share) compared to a net income of NIS 1,101 million (NIS 8.47 per share) for the same period last year. The change is mainly due to the exchange of Atrium's convertible bonds into Atrium's shares in December 2009.
- Cash flow from operating activities for the period totaled NIS 782 million, compared to NIS 926 million for the same period last year. The change is mainly due to timing differences in payables and receivables.
- Same-property NOI grew by 3.6%, resulting from an increase of 2.5% in the same-property NOI from North America, a 4.8% increase in same-property NOI from Europe and a 7.2% increase in same-property NOI from Israel.
Acquisition, Development and Redevelopment Activities
During the year, the Group acquired 16 income-producing properties totaling 186 thousand square meters and adjacent land parcels for future development in a total amount of NIS 1,941 million. The Group also invested an amount of NIS 1,633 million in new development and redevelopment projects.
As of December 31, 2010, the Group had 12 properties under development with a gross leasable area of 174 thousand square meters and 16 properties under redevelopment with a gross leasable area of 70 thousand square meters with a total investment value of NIS 1,318 million. The additional cost to complete the properties under development and redevelopment totals NIS 1,652 million.
Financing Activities
- During 2010, the Group raised NIS 2.2 billion in equity as compared to NIS 1.04 billion during 2009. The total equity raised includes the Company's equity raise of approximately NIS 650 million through issuance of 15.5 million common stock.
- As of December 31, 2010, the Group had cash on hand and undrawn revolving credit facilities in the amount of NIS 6.5 billion of which NIS 1.9 billion are at the Company's level.
Balance Sheet Highlights
- As of December 31, 2010, net debt to total assets (LTV) was 60.7%, as compared to 63.7% as of December 31, 2009.
- Shareholders' equity as of December 31, 2010 totaled NIS 5,915 million (NIS 38.3 per share), as compared to NIS 5,189 billion (NIS 37.4 per share) on December 31, 2009.
Dividend
The Company's Board of Directors declared a minimum quarterly cash dividend of NIS 0.39 per share on its common shares payable on April 11, 2011 to shareholders of record as of March 29, 2011. The quarterly cash dividend of NIS 0.39 per share represents an annualized dividend of NIS 1.56.
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 Englishon Wednesday, March 16, 2011 at 3:00 p.m. United Kingdom/ 4:00 p.m. Central European Time/ 11:00 a.m. Eastern Time to review fourth quarter and year-end 2010 financial results. Shareholders, analysts and other interested parties can access the conference call by dialing 1 866 926 5708 (U.S./Canada) or 0800 073 8965 (U.K.) or +44 (0) 1452 560 304 (International) or 1 809 431 443(Israel) or on the Company's website .
For those unable to participate during the call, a replay will be available on Gazit-Globe's website for future review.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company's annual report is available on Gazit-Globe website at . 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 world's leading multi-national real estate companies engaged in the acquisition, development and management of supermarket-anchored shopping centers in urban growth markets. 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. As of December 31, 2010, the Company has an equity market capitalization of about $2.0 billion (US). The Group operates in more than 20 countries, owns and manages over 660 properties with a gross leasable area of more than 6.4 million square meters, has a consolidated total asset value of approximately $16 billion (US) and a gross annualized income of about $1.6 billion (US).
The Group's activities have grown significantly since it was established in 1991 while the quality of its operations and assets has been continually enhanced. Gazit-Globe's primary objective is the creation of value through long-term maximization of cash flow and capital appreciation from its growing real estate portfolio, while increasing its dividends over time. Gazit-Globe's knowledge and expertise, combined with its proactive management style and disciplined acquisition strategy, has enabled it to grow its business consistently and expand its portfolio into other asset classes and geographies. Gazit-Globe continues to seek opportunities in the regions where it operates as well as in new territories. .
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements relating to Gazit-Globe's operations and the environment in which it operates that are based on Gazit-Globe'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 difficult 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 Gazit-Globe's website, for a discussion of the risks and uncertainties associated with forward-looking statements. You therefore 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 statement is made. Except as required by laws and regulations, Gazit-Globe undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
CONTACT: Gazit-Globe Ltd. 1 HaShalom Rd. Tel Aviv, Israel 67892 +972 3 694 8000 For additional information: Gadi Cunia Chief Financial Officer