Azrieli Group Reports Q2/2024 Results
In Q2, the NOI (excluding Compass, which has been sold) increased by about 5% from last year, reaching approximately NIS 553 million.
Total FFO saw a year-over-year rise of around 17%, hitting a record NIS 419 million; FFO for Q2, excluding senior housing, grew by about 11% year-over-year, totaling roughly NIS 379 million.
TEL AVIV, Israel — Eyal Henkin, CEO of Azrieli Group, remarked: “We are concluding another successful quarter for the Group, marked by ongoing growth in same-property NOI and achieving record double-digit quarterly FFO growth. The office segment continues to perform strongly, maintaining high occupancy rates. We are witnessing increased interest from potential tenants and are actively exploring various opportunities. Our malls are experiencing growth across all metrics, highlighted by a steady rise in store revenues. The Data Centers segment is also gaining momentum, with its contribution to our results steadily increasing. Importantly, these results do not fully reflect several significant contracts we have recently finalized, which are expected to greatly enhance the Group’s performance in the upcoming year. We remain dedicated to identifying numerous opportunities in the sector, which we are enthusiastically pursuing.
On behalf of the Azrieli Group, I want to express our solidarity with the security forces, and we all hope for the swift and safe return of the hostages.”
Financial Highlights for Q2/2024
- NOI in Q2 amounted to roughly NIS 553 million, a slight decrease from approximately NIS 559 million year-over-year, primarily due to the sale of Compass.
- Same-Property NOI (excluding the sale of Compass) rose by about 5% in Q2, totaling around NIS 553 million compared to roughly NIS 527 million year-over-year.
- FFO excluding senior housing reached 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 hit around NIS 419 million, compared to approximately NIS 357 million the previous year, reflecting a growth of around 17%.
- Net profit attributable to shareholders in Q2 was about NIS 156 million, down from roughly NIS 418 million year-over-year. This decline is due to a revaluation profit of approximately NIS 491 million recorded in the same quarter last year, compared to about NIS 65 million in Q2. Comprehensive income for Q2 totaled around NIS 413 million, compared to approximately 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 across Israel, and 97% in senior housing.
- Store revenues in Q2 increased by 10% year-over-year, with an 8% rise noted from March to June year-over-year. In July, store revenues jumped 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 total approximately NIS 1.5 billion. Along with Bank Leumi stock, the Group’s cash and cash equivalents, combined with marketable securities, amount to around NIS 2.5 billion. After 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 stands at approximately NIS 20 billion.
- The total value of investment property and investment property under construction is around NIS 46.7 billion.
- The equity to assets ratio is approximately 44%, while the net debt to assets ratio is about 38%.
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Unencumbered assets are valued at approximately NIS 34 billion.
A conference call to discuss 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 invited 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 reached 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 experienced a 10% increase year-over-year in Q2, with a significant 14% rise in July compared to the same month last 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 holds 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 expects significant contributions from newly signed contracts and is actively seeking various opportunities in the sector.
