Azrieli Group Ltd. · TASE:AZRG
Azrieli — Q4 2024 Earnings Presentation
45 slides from Azrieli's earnings presentation, Mar 20, 2025
Slide 1: Capital Market Presentation
Capital Market Presentation 31.12.2024 Investor Presentation, December 2024
Slide 2: Disclaimer
DISCLAIMER The information included in this presentation is merely a summary and does not exhaust all of the Slide 16 – The Company’s estimations regarding the projected increase in the results of the data center information about the Company and its operations, nor is it a substitute for inspection
Slide 3: Business Card
Azrieli Group / Business Card ~81% Traded on the capital market since 2010 Israel’s largest of the value of the investment and under- real estate construction income-producing real Free float: 30.1% estate (on a consolidated basis) is company attributed to real estate in Israel Rating The Company’s
Slide 4: Property Portfolio
Azrieli Group / Property Portfolio(1) 379,000 sqm 23 malls and retail centers Malls and retail centers Offices Senior homes Rental housing 655,000 sqm 17 office and other spaces in Israel 245,000 sqm 8 office properties overseas 115,000 sqm 4 senior homes 1,141 apartments 34,000 sqm 3 rental housing
Slide 5: Properties Breakdown, NIS in millions
Azrieli Group / Properties Breakdown, NIS in millions(1) Hotels 1% 30% Real estate in Israel – offices and other spaces 571 17,282 Rental housing 4% 28% in Israel Real estate in 2,056 Israel – malls 16,145 Income- producing 3% 1,858 15% properties in the U.S. Data centers 8,966 Cash, holdings, other
Slide 6: 2024 Highlights
Azrieli Group / 2024 Highlights FINANCIAL HIGHLIGHTS • Same Property NOI – up ~8% year-over-year. • The NOI in 2024 totaled approx. NIS 2,302 million, up ~9% year-over- year. The increase mainly derives from the increased rent in the malls, offices and data center segments. Net of discounts granted
Slide 7: Operating Segments
OPERATING SEGMENTS 7 Investor Presentation, December 2024
Slide 8: Malls and Retail Centers
Azrieli Group / Malls and Retail Centers INNOVATION & NOI in 2024 GLA UPGRADES NIS 1,009M ~379,000sqm(1) compared with NIS 941M in 2023 Azrieli App Azrieli Gift Card Book value Average Approx. occupancy rate Betterment and NIS 16.1B 99%(2) upgrade of malls and retail centers (1) Figures as of 31 Dec
Slide 9: Store Revenues & Occupancy Cost Ratio
Store Revenues / & Occupancy Cost Ratio Total Change in Azrieli Group Mall Store Revenues January- December 2024 12% January- December 2023 % Occupancy Cost Ratio Occupancy Cost Ratio 12.2% 12.3% 11.9% 12.0% 12.0% 11.9% 11.9% 11.3% 11.5% 11.2% 11.2% 11.5% 10.9% 10.6% 9.5% 2010 2011 2012 2013 2014 20
Slide 10: Offices
Azrieli Group / Offices INNOVATION & NOI in 2024 GLA UPGRADES NIS 865M ~655,000sqm(1) compared with NIS 821M in 2023 Community Technology Book value Average occupancy rate Betterment and upgrade of office Approx. 98% (2) NIS 17.3B towers (1) Figures as of 31 December 2024. GLA figures reflect the Co
Slide 11: Customers / Offices
Customers / Offices 11 Investor Presentation, December 2024
Slide 12: Global Data Center Operations – Green Mountain Global
Azrieli Group / Global Data Center Operations – Green Mountain Global NOI in 2024 NIS 230M compared with NIS 103M in the same period last year GMG - Contracted NOI / MW Hamar NIS 500M / 152MW Rjukan )1( Oslo Stavanger )€ 126M) London Renewable power 100% Frankfurt Power costs PUE Low Low Award winni
Slide 13: Data Center Operations – Timeline
Azrieli Group / Data Center Operations – Timeline 2017 2019 2019 2021 2023 2024 January April October December Decision to Acquisition of Acquisition Acquisition Signing of JV Sale of As of 31 enter the Data 19.5% of of 100% of a agreement with Compass December 2024, Center space Compass Green Data
Slide 14: Global Data Center Operations – Green Mountain Global
Azrieli Group / Global Data Center Operations – Green Mountain Global Significant growth since the acquisition of Green Mountain (July 2021) נורבגיה,אתר טיק טוק Change December 2024 Acquisition – July 2021 X3 3 1 Active countries X2 6(1) 3 Number of sites X6 152 24 MW X6 500 (3) 84 NOI (NIS in
Slide 15: Global Data Center Operations – Green Mountain Global
Azrieli Group / Global Data Center Operations – Green Mountain Global SVG1 – Rennesøy RJU1 – Rjukan OSL1 – Enebakk OSL2 – Hamar LON1 – East FRA1 – Mainz A former NATO ammunition Colocation data center Hyperscale and East London location, storage facility located at the nexus of wholesale data center
Slide 16: Global Data Center Operations – Green Mountain Global
Azrieli Group / Global Data Center Operations – Green Mountain Global Active annual output development based on Bookings(1) in MW excluding potential additional contracts 152 152 152 CAPACITY 7 2 100% (MW) 145 150 152 Billed BBNB Q4 '24 Q4 '25 Q4 '26 Annual NOI development in NIS based on Bookings (
Slide 17: Hamar Project – OSL2
Azrieli Group / Hamar Project – OSL2 Expansion Option #2 Building A | 30MW Expansion Option #1 Building B | 30MW Building C | 30MW 17 Investor Presentation, December 2024
Slide 18: Palace Senior Housing Chain
Azrieli Group / Palace Senior Housing Chain Operating Homes NOI in 2024 Book value ~115,000 sqm(1) NIS 87M Approx. NIS 3.6B Total above-ground area compared with NIS 72M in Average occupancy rate 1,141 apartments 2023 Palace Tel Aviv 99%(2) 231 apts. + 4 ‘Medical’ units Palace Modi’in Palace Sde Dov
Slide 19: Properties Under Construction
PROPERTIES UNDER CONSTRUCTION 19 Investor Presentation, December 2024
Slide 20: Development Pipeline
Azrieli Group / Development Pipeline Herzliya Glil Yam Ramat Hasharon SolarEdge ~19,630 m2 ~43,000 m2 Tel Aviv Expansion of Azrieli Mall and the Spiral Tower Petah Tikva Land for development ~150,000 m2 (3) ~53,000 m2 (1) Tel Aviv Azrieli Town, Building E ~21,000 m2 (4) Jerusalem Mount Zion Hotel Ho
Slide 21: Development Projects / Growth Driver
Development Projects / Growth Driver Use Estimated Completion EstimatedConstructionCost, Property Name Location GLA (2) IncludingLand(NIS in millions)(1) Date Palace Rishon LeZion Rishon LeZion 37,300 2025 530-550 SolarEdge Campus Ramat HaSharon 43,000 2025(8) 790-810 Short + Medium-Term Modi’in, Lo
Slide 22: Expected Contribution to NOI & FFO
Development Projects / Expected Contribution* to NOI & FFO NOI (NIS in millions) (NIS in millions) Annualized actual NOI in Q4/2024 2,520 2,933 2,520 Additional NOI from DC segment based on signed contracts** 102 16% Addition due to first-time occupancy of properties in the period 15 Additional NOI
Slide 23: The CBD of Tel Aviv
Azrieli Group / The CBD of Tel Aviv Expansion of Azrieli Azrieli Center Sarona + Spiral Tower Azrieli Town Azrieli Residence + Center Retail Azrieli Town Azrieli Building E Town Under construction & planning Income-producing 23 Investor Presentation, December 2024
Slide 24: Expansion of Azrieli Mall & Spiral Tower, Tel Aviv
Development Projects / Expansion of Azrieli Mall & Spiral Tower, Tel Aviv Cost of land GLA Land area Approx. NIS 374M 150,000m2 ~ 8,400 m2 including ~13,000 m2 of retail space for expansion of the Azrieli Tel Aviv Mall Estimated construction Uses Estimated completion date cost, including land 2028 N
Slide 25: Expansion of Azrieli Mall & Spiral Tower, Tel Aviv
Development Projects / Expansion of Azrieli Mall & Spiral Tower, Tel Aviv 25 Investor Presentation, December 2024
Slide 26: Lot 10 - Modi'in
Development Projects / Lot 10 - Modi’in 8,100m2 ±37,000m2 Clalit of offices & retail(1) Medical Center (included in the office and retail areas) Connection to A bustling center with the mall and the commercial and retail buildings and a chain of existing complex movie theaters (1) The Company promot
Slide 27: Glil Yam – Rental Housing
Development Projects / Glil Yam – Rental Housing GLA Land area Coastline Estimated construction cost, 630 m2 retail space ⁓ 5,200 m2 including land Highway 19,000 m2 rental housing spanning 2 adjacent lots NIS 380-400M (147 apartments) 2 lots Cost of land per apartment Uses Estimated completion date
Slide 28: Mount Zion Hotel, Jerusalem
Azrieli Group / Mount Zion Hotel, Jerusalem Planned built-up area Acquisition cost Land area according to approved zoning plan ⁓NIS 275 million ⁓ 13,000 m2 34,000 m2 (1) up to 350 rooms Estimated completion date The Group intends to remodel the hotel Estimated construction cost 2027 to A+ NIS 645-67
Slide 29: Mount Zion Hotel, Jerusalem
Azrieli Group / Mount Zion Hotel, Jerusalem Hotel simulation after planned expansion: 29 Investor Presentation, December 2024
Slide 30: Sde Dov Senior Home
Development Projects / Sde Dov Senior Home Award of Sde Dov tender Land area On 19 February 2025, the Company was ⁓ 4,500 m2 awarded an Israel Land Authority tender for acquisition of a leasehold on a lot in Tel Aviv for construction of a senior housing and retail project. Projected cost of the proj
Slide 31: Existing Properties / Expansion & Betterment
Existing Properties / Expansion & Betterment The following projects are undergoing betterment and various statutory proceedings: Projects in Proceeding Timeframe for Completion Name of Property Location Gross Added Area of Statutory Proceeding Property Status Expansion of retail and office space and
Slide 32: ESG / Environment
Azrieli ESG / Environment 5 properties are LEED certified Azrieli Group’s flagship project The world’s tallest tower with a recycled façade 14 properties 350 meters tall with 91 floors are LEED O&M certified The largest project in the world to use recycled aluminum 19 properties Implement the ‘Sviva
Slide 33: ESG / Society
Azrieli ESG / Society Swords of Iron Community Collaboration Following the Swords of Iron war, and as part of Azrieli • Projects for the community focusing on core business Group’s ESG commitment, the Group rallied in support of themes such as: Creating community gardens at our Israeli society and a
Slide 34: ESG / Corporate Governance
Azrieli ESG / Corporate Governance Gender diversity on the Board • Five of the ten members on Azrieli’s board are women, i.e., 50% • The chair of the board is a woman • We advocate gender equality across all Group ranks Business Conduct Code Code of Ethics One Step Ahead • The code is based on our v
Slide 35: Financials
FINANCIALS 35 Investor Presentation, December 2024
Slide 36: Continuous NOI Growth
Continuous NOI Growth NOI compared with previous years and the same quarter last year NOI (NIS in millions) NOI (NIS in millions) )1( 9% 2,302 28% 630 19 2,113 230 6 15 1,953 154 87 99 4 92 72 133 110 494 22 60 4 17 1,611 1,590 111 27 1,523 10 20 37 53 1,385 37 139 48 27 865 1,301 149 122 1,238 39 8
Slide 37: Continuous FFO Growth
Continuous FFO Growth FFO (Management approach)(2) compared with previous years and the same quarter last year FFO (Management approach) attributed to the real estate operations (1)(2) (NIS in millions) 15% 1,709 119 )4()3( )3( 21% )4( 1,481 1,318(4) 1,378 103 431 1,313 1,278 85 )4()3( 24 153 166 35
Slide 38: Consistent and Growing Dividend Payments
Dividend Distributions/ Consistent and Growing Dividend Payments Dividend distribution of NIS 800 million for 2024 1,000)1( 1,000 8.25 8.50 900 800 800 7.50 700 700 650 6.50 600 600 560 6.60 520 500 480 5.77 5.50 400 5.36 400 4.50 320 300 4.95 265 280 4.29 4.62 300 240 240 3.96 3.50 200 3.30 2.50 10
Slide 39: Leverage Ratio, Duration & Cost of Debt
Leverage Ratio, Duration / & Cost Of Debt Extension of Duration of Average Debt)2( Financial strength)1( 6.4 6.0 6.1 • Low leverage ratio – net financial debt to assets: Approx. 34% 5.3 5.3 5.5 • Equity to assets: Approx. 41% 4.5 4.1 4.4 • Cash and cash equivalents: Approx. NIS 4.63 billion 3.2 3.1
Slide 40: Payment Schedule (principal only)
Payment Schedule (principal only) Consolidated, as of 31 December 2024 10,817 ■ Foreign institutional bodies and banks ■ Bonds ■ Long-term institutional bodies and banks ■ CPs and short-term loans 10,540 3,350 91 2,473 2,419 712 1,781 1,805 1,952 1,651 58 735 1,427 91 91 26 1,479 1,692 1,478 1,869 1
Slide 41: Summary of Financial Statement Results
Summary of Financial Statement Results (NIS in millions) Consolidated Consolidated Consolidated Consolidated Q4/2024 Q4/2023 2024 2023 Revenues from rent, management and maintenance fees and sales 912 722 3,281 2,943 NOI 630 494 2,302 2,113 Same-property NOI 571 495 2,207 2,041 FFO (Management appro
Slide 42: Summary of Balance Sheet Figures
Summary of Balance Sheet Figures (NIS in millions) Consolidated Consolidated 31 December 2024 31 December 2023 Cash, securities and deposits 4,634 4,916 Gross financial debt 25,894 22,749 Net financial debt(1) 19,744 16,801 Net financial debt to assets 34% 31% Financial assets (mostly Bank Leumi sto
Slide 43: Average Cap Rate & FFO / Income-producing Real Estate Business
Average Cap Rate & FFO / Income-producing Real Estate Business 2024 FFO(2) (Management’s method) attributed to real estate operations – NIS 1,709 million Weighted average cap rate – 6.99% NIS in millions 2024 Q4 2024 NIS in millions NOI 2,302 630 Total investment real estate as of 31 December 2024 4
Slide 44: Recap / Leadership, Innovation & Strength
Recap / Leadership, Innovation & Strength Continued growth in the key Exceptional financial parameters of the core resilience and strength business (NOI, FFO) Consistent high The Company’s operations occupancy rates over are predominantly in Israel time SIGNIFICANT GROWTH DRIVERS: • Organic growth •
Slide 45: Thank You
Thank You 45 Investor Presentation, December 2024