PRN: Azrieli Group Ltd. Announces First Quarter Results for 2012
Azrieli Group Ltd. Announces First Quarter Results for 2012
TEL AVIV, Israel, May 28, 2012 /PRNewswire/ --
Reports aÂ 14% increase in NOI, totaling NIS 269 million in Q1/2012, and an 10% increase in FFO from real estate activity, totaling NIS 174 million, compared with first quarter 2011
Azrieli Group Ltd. (TASE: AZRG IT) reported today its results for the quarter ending March 31, 2012.
FirstÂ Â Quarter Financial Highlights
Shlomo Sherf, Azrieli Group's CEO: "Azrieli Group provides its stakeholders with growth in its current business performance, and development on an unprecedented scale which serves as a future growth engine, providing strength and security within the solid financial structure of its core business. The results for the quarter continue to attest to the exceptional position held by Azrieli Group in the Israeli economy".
Acquisitions, Development and Redevelopment Activities
Balance Sheet as ofÂ 31Â MarchÂ Â 2012
Core Business Operations
First quarter 2012 operating results for the shopping centers, offices and others, and the portfolio in the U.S.A segments:
Shopping Center Portfolio in Israel
Office Space and Others Portfolio in Israel
Income-Producing Real Estate Portfolio in the U.S.A.
GraniteÂ HaCarmel (approx. 60.68% holding) - Net profit of NIS 26 million in Q1/2012, compared with a net profit of NIS 35 million in Q1/2011 (attributed to the shareholders). Revenues increased but margins eroded, leading to a decrease in the bottom line.
Bank Leumi (approx. 4.8% holding) - In Q1/2012, the share value on TASE rose by 7%, a NIS 54 million increase in the Group's holding value in the Bank. Net of tax, the increase was NIS 49 million.
Leumi Card (20% holding) - Q1/2012 financial statements not yet published. Leumi card distributed a dividend of NIS 40 million in Q1/2012. The Group's share is NIS 8 million.
The Company remains committed to its core business objectives:
The Company will hold its quarterly conference call, hosted by Mr. Shlomo Sherf, CEO and Mr. Yuval Bronstein, CFO, on Monday, May 27, 2012 at 17:00 Israel local time (16:00 CET; 13:00 London time and 10:00AM New York time). The call will include a review of the Company's Q1/2012 performance, as well as a discussion of the Company's strategy and expectations for the future.
A Question & Answer session will follow the discussion.
To participate, please dial 03-9180687 from Israel, 1-888-407-2553 from the US, 0-800-917-9141 from the UK, Â 0-800-022-9568 from the Netherlands 1-866-485-2399 from Canada and +972-3-9180610 internationally.
A replay will be available for 3 days by dialing 03-9255942 from Israel, 1-888-782-4291 from the US and Canada 0-800-028-6837 from the UK, 0-800-023-4246 from the Netherlands and +972-3-9180687 internationally.
Access to the presentation will be available through the Company's website at http://www.azrieli.com under "Investor Relations → Presentations."
For Additional Information
Full copies of the Company's financial statements are available on the Azrieli Group's website at http://www.azrieli.com, in the IR (Investor Relations) section. To be included in the Company's e-mail distributions, and to receive press releases, news and other Company notices, please send e-mail addresses to Mr. Moran Goder, Head of Investor Relations, at firstname.lastname@example.org, Tel: +972-3-6081310.
About Azrieli Group
Azrieli Group Ltd. owns and operates one of Israel's largest portfolios of malls, shopping centers and office properties nationwide. The Company is publicly traded on TASE under the symbol AZRG IT and is included in the TA-25 and TA-real-estate 15 indices. It is the only Israeli stock included in the EPRA Index. As ofÂ March 31,Â 2012, the Company has an equity market capitalization of about $2.9 billion. The Company operates mainly in Israel, and owns and manages properties with a gross leasable area of approx.Â 717,000 square meters; the CompanyÂ hasÂ interests in 13 shopping centers comprising 256,000 square meters of leasable space across Israel,Â 8Â office properties comprising 282,000 square meters of leasable ! space across Israel,Â and 5 properties overseas (mainly in Houston, Texas) comprising 179,000 square meters of leasable space. In addition, the Company hasÂ 6Â projects under development comprising 328,500 square meters of leasable space in Israel. 93% of the fair value of investment properties and properties under development relates to domestic properties (in Israel). The Group has been specializing in shopping center and office space development, acquisitions, and management for the past 27 years. For further information, please visit the Company's website atÂ Â http://www.azrieli.com
Accounting and Other Disclaimers
The Company believes that publication of the 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 the FFO provides a better basis for a 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 real estate 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.
Forward Looking Statements
This press release may contain forward-looking statements relating to Azrieli Group's operations and the environment in which it operates that are based on Azrieli Group'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 impossible 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 Azrieli Group's website, for a discussion of the risks and uncertainties associated with forward-looking statements. Therefore you 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 statements are made except as required by laws and regulations. Azrieli Group undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
The Company refers you to the documents filed by the Company from time to time with the Israel Securities Authority, specifically the section titled "Risk Factors" in the Company's Annual Report for the year ended December 31, 2010, as may be updated or supplemented in the Company's immediate filings, which discuss these and other factors that could adversely affect the Company's results.
Please note that this document should not be regarded as a substitute for reading the original Hebrew version of the Company's reports in full. The full and legal version of the Company's reports, in Hebrew, were released by the Company on May 28th, 2012 and may be reviewed on the Israeli MAGNA website at http://www.magna.isa.gov.il
1. Based on the 31.03.2012 extended standalone financial statements.
2. For further details on the method of calculation and the assumptions, see Sections 1.1.7 of the board of directors' report as of March 31, 2012. Funds from operations (FFO) are a widely accepted supplemental measure of the performance of income-producing real estate companies and REITs.
3. Based on the 31.03.2012 extended standalone financial statements.
Azrieli Center, 1 Tel Aviv 67021, Tel: +972-3-6081300, Fax: +972-3-6094518; http://www.azrieli.com
Company Codes: Bloomberg:AZRG@IT, LSE:00AM