Azrieli Group Sees Strong Q2/2024 Performance with Growth
Azrieli Group Reports Q2/2024 Results
NOI (excluding Compass, which was sold) in Q2 is up approximately 5% compared to last year, totaling around NIS 553 million.
Total FFO increased by approximately 17% year-over-year, reaching a record NIS 419 million; FFO in Q2, excluding senior housing, rose about 11% year-over-year for a total of roughly NIS 379 million.
TEL AVIV, Israel — Eyal Henkin, CEO of Azrieli Group, stated: “We are wrapping up another successful quarter for the Group with ongoing growth in the same-property NOI and achieving record double-digit quarterly FFO growth. The office segment continues to deliver strong results while upholding high occupancy rates. We are experiencing increased interest from potential tenants and are actively pursuing various opportunities. Our malls have shown growth across all metrics, marked by a continuous rise in store revenues. The Data Centers segment is also gaining traction, and its contribution to the results is consistently increasing. Importantly, these results do not fully account for several significant contracts we have recently finalized, which are anticipated to considerably enhance the Group’s performance in the forthcoming year. We remain committed to identifying numerous opportunities in the sector, which we are eagerly pursuing.
On behalf of the Azrieli Group, I express our solidarity with the security forces, and we all hope for a prompt and safe return of the hostages.”
Financial Highlights for Q2/2024
- NOI in Q2 totaled roughly NIS 553 million, a slight decrease from approx. NIS 559 million year-over-year due to the sale of Compass.
- Same-Property NOI (excluding the sale of Compass) increased by about 5% in Q2, totaling around NIS 553 million compared to approximately NIS 527 million year-over-year.
- FFO excluding senior housing recorded approximately NIS 379 million in Q2 compared to about NIS 342 million year-over-year, marking an increase of about 11%. Total FFO for Q2 reached around NIS 419 million compared with around NIS 357 million in the previous year, reflecting an increase of approximately 17%.
- Net profit attributable to shareholders in Q2 was about NIS 156 million compared to roughly NIS 418 million year-over-year. This decline is attributed to revaluation profit of approximately NIS 491 million recorded in the same quarter last year, contrasted with approximately NIS 65 million in Q2. Comprehensive income for Q2 totaled approximately NIS 413 million compared to around NIS 512 million year-over-year.
Occupancy Rates and Store Revenues
- The average occupancy rate (excluding lease-up properties) reached 99% in malls, 98% in offices within Israel, and 97% in senior housing.
- Store revenues in Q2 grew by 10% year-over-year, and an increase of 8% was noted from March to June year-over-year. In July, store revenues surged by 14% compared to the same month last year.
Balance Sheet Information as of June 30, 2024
- The Group's cash, deposits, and short-term investments amount to approximately NIS 1.5 billion. In conjunction with Bank Leumi stock, the Group’s cash and cash equivalents, along with marketable securities, total around NIS 2.5 billion. Following the balance sheet date, the Company secured over NIS 1.8 billion in a CP offering, expanding Series G, and introducing a new series (I).
- Net debt totaled approximately NIS 20 billion.
- The total value of investment property and investment property under construction stands at around NIS 46.7 billion.
- The equity to assets ratio is approximately 44%, while the net debt to assets ratio is around 38%.
-
Unencumbered assets are valued at approximately NIS 34 billion.
A conference call to review the quarterly results is scheduled for today at 16:00 local time in Israel, 15:00 CET, 14:00 UK, and 9:00 AM Eastern Time.
Interested parties are welcome to join the call using the provided registration link.
Contact Info
Tamar Stein, Azrieli Group. +972-54-4432634. tamars@azrieli.com
Frequently Asked Questions
1. What were the main financial highlights for Q2/2024?
In Q2/2024, the NOI totaled approximately NIS 553 million, FFO increased to about NIS 419 million, and net profit attributable to shareholders was around NIS 156 million.
2. How did the revenues from stores perform in Q2?
Store revenues saw a 10% increase year-over-year in Q2, with a notable 14% rise in July compared to the same month in the previous year.
3. What was the average occupancy rate across different segments?
The average occupancy rate was 99% in malls, 98% in offices in Israel, and 97% in senior housing.
4. How significantly has the Group's balance sheet changed as of mid-2024?
As of June 30, 2024, the Group has NIS 1.5 billion in cash and short-term investments, with net debt of about NIS 20 billion and total investment property valued at approximately NIS 46.7 billion.
5. What is the outlook for Azrieli Group moving forward?
Azrieli Group anticipates significant contributions from newly signed contracts and is actively pursuing various opportunities in the sector.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/