Slide 1: Capital Market Presentation
CAPITAL MARKET PRESENTATION 30 September 2024 Investor Presentation, September 2024 | 1
Slide 2: Disclaimer
Disclaimer The information included in this presentation is merely a summary and does not exhaust all of the information Slide 16 – The Company’s estimations regarding the projected increase in the results of the data center segment about the Company and its operations, nor is it a substitute for in
Slide 3: Business Card
Azrieli Group / Business Card ~80% Israel’s largest real Traded on the capital of the value of the investment and estate company market since 2010 under-construction income- producing real estate (on a consolidated basis) is attributed to Free float: 30.1% real estate in Israel The Company’s stock i
Slide 4: Property Portfolio
Azrieli Group / Property Portfolio(1) Malls and retail centers Offices 23 malls and retail centers 377,000 m2 Senior Homes Rental Housing 17 office and other spaces – Israel 655,000 m2 8 office properties – overseas 245,000 m2 4 senior homes 115,000 m2 1,141 Apts. 3 rental housing properties 34,000
Slide 5: Properties Breakdown, NIS in millions
Azrieli Group / Properties Breakdown, NIS in millions(1) Hotels 1% 31% Real estate in Israel – offices and other spaces 554 17,056 Rental Housing 4% 29% in Israel Real estate in Israel 1,954 – Malls 16,031 Income- producing 3% 1,876 17% properties in the U.S. Data Centers 9,470 Cash, Holdings, Other
Slide 6: Q3 2024 Highlights
Azrieli Group / Q3 2024 Highlights FINANCIAL HIGHLIGHTS • Same Property NOI – up ~7% year-over-year. • NOI in the quarter totaled NIS ~586 million, v. NIS ~535 million in the same period the previous year. The increase is due to increase in the rent in the malls, offices and Data Centers. • FFO(1) (
Slide 7: Operating Segments
OPERATING SEGMENTS Investor Presentation, September 2024 | 7
Slide 8: Malls and Retail Centers
Azrieli Group / Malls and Retail Centers INNOVATION & GLA NOI in Q3/2024 UPGRADES ~377,000m2 (1) NIS 261M compared with NIS 252M in Q3/2023 Azrieli App Azrieli Gift Card Average Book value occupancy rate ~NIS 16.0B Betterment and 99%(2) upgrade of malls and retail centers (1) Figures as of 30 Septem
Slide 9: Store Sales and Occupancy Cost Ratio
Store Sales/ and Occupancy Cost Ratio Total Change in Azrieli Group Mall Store Sales July – Sept 2024 8.1% July – Sept 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% 10.6% 9.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 10: Offices
Azrieli Group / Offices INNOVATION & GLA NOI in Q3/2024 UPGRADES ~655,000m2(1) NIS 216M compared with NIS 207 M in Q3/2023 Community Technology Average occupancy rate Book value 98%(2) ~ NIS 17.1B Betterment and upgrade of office towers (1) Figures as of 30 September 2024. GLA figures reflect the Co
Slide 11: Customers / Offices
Customers / Offices Investor Presentation, September 2024 | 11
Slide 12: Global Data Center Operations – Green Mountain
Azrieli Group / Global Data Center Operations – Green Mountain NOI in Q3/2024 NIS 56M compared with NIS 29 million in Q3/2023 GM - Contracted NOI/ MW Hamar NIS 518M / 150MW (1) Rjukan Oslo Stavanger Renewable Power London 100% Frankfurt Electricity costs PUE LOW LOW Award winning and recognized as o
Slide 13: Data Center Operations – Timeline
Azrieli Group / Data Center Operations – Timeline 2017 2019 2019 2021 2023 2024 January April October September Decision to Acquisition of Acquisition Acquisition Signing of JV Sale of As of 30 enter the Data 19.5% of of 100% of a agreement with Compass September Center space Compass Green Data Cent
Slide 14: Green Mountain: Significant Growth Since Acquisition
Azrieli Group / Global Data Center Operations – Green Mountain Significant growth since the acquisition of Green Mountain (July 2021) TikTok site, Norway Acquisition – July 2021 September 2024 Change Active countries 1 3 x3 Number of sites 3 6(1) x2 MW 24 150 x6 NOI (NIS in millions)(2) 84 518 x6 (1
Slide 15: Global Data Center Operations – Green Mountain
Azrieli Group / Global Data Center Operations – Green Mountain 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 Built-
Slide 16: Green Mountain Capacity and NOI Development
Azrieli Group / Global Data Center Operations – Green Mountain Annual Active Operating Capacity Development based on Bookings (1) in MW excluding potential additional contracts 100% 150 150 150 5 CAPACITY 35 (MW) 145 150 115 Billed BBNB Q3 '24 Q4 '24 Annual Q1 '25 Annual NOI Development based on Boo
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 Investor Presentation, September 2024 | 17
Slide 18: Palace Senior Housing Chain
Azrieli Group / Palace Senior Housing Chain Operating Homes Aboveground area NOI in Q3/2024 NIS 22M Palace Tel Aviv ~115,000m2(1) comprising 231 Apts. + 4 ‘Medical’ Units 1,141 Apts. v. NIS 18M in Q3/2023 Palace Modi’in 239 Apts. + 4 ‘Medical’ Units Palace Ra’anana Book value Homes under Constructio
Slide 19: Properties Under Construction
PROPERTIES UNDER CONSTRUCTION Investor Presentation, September 2024 | 19
Slide 20: Development Pipeline
Azrieli Group / Development Pipeline Tel Aviv Ramat Hasharon Expansion of Azrieli Mall SolarEdge and the Spiral Tower ~150,000 m2 (3) ~43,000 m2 Tel Aviv Petah Tikva Azrieli Town, Building E Land for development ~21,000 m2 (4) ~53,000 m2 (1) Holon Jerusalem Project 3 Mount Zion Hotel ~250,000 m2 ~34
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 790-810 Modi’in, Lot 10 Modi’in 37,000 202
Slide 22: Expected Contribution to NOI and FFO
Development Projects/ EXPECTED CONTRIBUTION* TO NOI AND FFO (NIS in millions) Annualized actual NOI in Q3/2024 2,344 NOI (NIS millions) 2,940 Additional NOI from DC segment based on signed contracts** 307 2,344 Addition due to the initial occupancy of properties during the period 27 25% Additional N
Slide 23: The CBD of Tel Aviv
AZRIELI GROUP / THE CBD OF TEL AVIV EXPANSION OF AZRIELI AZRIELI MALL & SARONA SPIRAL TOWER AZRIELI TOWN AZRIELI RESIDENCES CENTER & RETAIL AZRIELI AZRIELI TOWN TOWN BUILDING E Under construction Income-producing Investor Presentation, September 2024 | 23
Slide 24: Expansion of Azrieli Mall & Spiral Tower, Tel Aviv
DEVELOPMENT PROJECTS / EXPANSION OF AZRIELI MALL & THE SPIRAL TOWER, TEL AVIV Land area GLA Cost of land 8,400 m2 150,000m2 NIS ~374M 2 including 13,000 m of retail space for expansion of the Azrieli Tel Aviv Mall Estimated completion date Uses Estimated construction cost, including land 2027 Hotel
Slide 25: Expansion of Azrieli Mall & Spiral Tower, Tel Aviv
DEVELOPMENT PROJECTS / EXPANSION OF AZRIELI MALL & THE SPIRAL TOWER, TEL AVIV Investor Presentation, September 2024 | 25
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 movie existing complex theaters (1) The Company promoted a plan t
Slide 27: SolarEdge Campus in Ramat HaSharon
DEVELOPMENT PROJECTS / SolarEdge Campus in Ramat HaSharon Herzliya The acquired Land area Office campus area site The investment amount(1) 26,000 m2 NIS 1,067M 43,000 m2 of which ⁓16,000 m2 is for use by (including land) in the and underground parking Highway SolarEdge SolarEdge Campus 2 Cinema City
Slide 28: Glil Yam – Rental Housing
DEVELOPMENT PROJECTS / GLIL YAM – RENTAL HOUSING GLA Land area Coastline Estimated construction cost, 630m2 retail 5,200 m2 including land Highway 19,000 m2 rental housing over 2 adjacent lots NIS 380-400M (147 apartments) 2 plots Cost of land per apartment Uses Estimated completion date NIS 710,000
Slide 29: Mount Zion Hotel, Jerusalem
Azrieli Group / MOUNT ZION HOTEL, JERUSALEM Planned built-up area Acquisition cost Land area according to approved zoning plan ⁓NIS 275M 13,000 m2 34,000m2 (1) up to 350 rooms Estimated completion date The Group intends to remodel the hotel Estimated construction cost 2027 to A+ NIS 645-675M Uses Ad
Slide 30: Mount Zion Hotel, Jerusalem
Azrieli Group / MOUNT ZION HOTEL, JERUSALEM Rendering of the hotel following the planned expansion Investor Presentation, September 2024 | 30
Slide 31: Existing Properties / Expansion and Betterment
EXISTING PROPERTIES / EXPANSION AND BETTERMENT The following projects are undergoing betterment and various statutory proceedings: Projects in Timeframe for Completion Name of Property Location Status Gross Area Added of Statutory Proceeding the property Expansion of retail and office space, and Azr
Slide 32: ESG / Environment
Azrieli ESG / Environment 7 properties are LEED certified Azrieli Group’s flagship project The world’s tallest tower with a recycled façade 14 properties 350 meters tall, 91 floors are LEED O&M certified The largest project in the world to use recycled aluminum 18 properties Implement a landfill was
Slide 33: ESG / Society
Azrieli ESG / Society Swords of Iron Community Partnership Following the Swords of Iron war, and as part of Azrieli • Projects for the community focusing on core business Group’s ESG strategy, it has rallied to support the themes such as: establishing community gardens on our Israeli people and has
Slide 34: ESG / Corporate Governance
Azrieli ESG / Corporate Governance Gender diversity on the Board • 5 out of the 10 members of Azrieli’s board are women, constituting 50% • The board’s chair is a woman • We champion gender equality throughout the Group Code of Ethics Code of Ethics The Code of Ethics: • Is based on our values and v
Slide 35: Financials
FINANCIALS Investor Presentation, September 2024 | 35
Slide 36: Continuous NOI Growth
Continuous NOI Growth The NOI compared with previous years and the same quarter last year NOI (NIS in millions) SP NOI (NIS in millions) (1) 2,113 10% 586 1,953 15 5 154 4 535 56 72 4 133 110 29 22 60 18 26 1,611 111 10 1,590 25 1,523 37 53 139 48 1,385 37 122 1,301 149 39 821 1,238 1,214 216 29 121
Slide 37: Continuous FFO Growth
Continuous FFO Growth The FFO (Management’s method)(2) compared with previous years and the same quarter last year FFO (Management’s method) attributed to the real estate business(1)(2) (NIS in millions) (3) 1,461 1,360 103 1,278 1,313 1,318 12% 85 445 153 166 165 398 45 1,007 1,053 31 999 45 54 923
Slide 38: Consistent and Growing Dividend Distributions
Consistent and Growing Dividend Distributions Dividend distribution of NIS 1,000 million for 2023 (1) 1,000 1,000 8.25 8.50 900 800 7.50 700 700 650 6.50 600 600 560 520 480 5.50 500 5.77 400 5.36 400 4.50 320 300 4.95 265 280 4.29 4.62 300 240 240 3.50 3.96 200 3.30 2.50 100 2.64 2.31 2.47 1.98 2.1
Slide 39: Leverage Ratio, Duration and Cost of Debt
Leverage Ratio, Duration and Cost of Debt FINANCIAL STRENGTH(1) EXTENSION OF AVERAGE DURATION OF DEBT (2) • Low leverage ratio – net financial debt to assets ratio: ~38% 6.4 6.0 5.5 5.6 5.3 5.3 ~43% • Equity to assets ratio : 4.5 4.4 4.1 • Cash and cash equivalents: ~NIS 2.47B 3.2 3.1 3.3 (approx. N
Slide 40: Payment Schedule (principal only)
Payment Schedule (principal only) On a consolidated basis, as of 30 September 2024 9,885 ■ Foreign Banks and Institutional Bodies ■ Bonds ■ Long-Term Banks and Industrial Bodies ■ CPs and Short-Term Loans 9,315 3,457 90 2,409 2,416 1,778 650 1,802 1,949 58 1,650 735 90 90 26 1,476 1,689 1,866 1,468
Slide 41: Summary of Financial Statement Results
Summary of Financial Statement Results (NIS in millions) Consolidated Consolidated Consolidated Q3 2024 Q3 2023 2023 Revenues from rent, maintenance, management fees and sales 839 779 2,943 NOI 586 535 2,113 Same-property NOI 573 535 -- FFO (Management’s method) attributed to the real estate busines
Slide 42: Summary of Balance Sheet Figures
SUMMARY OF BALANCE SHEET FIGURES (NIS in millions) Consolidated Consolidated 30 September 2024 31 December 2023 Cash, securities and deposits 2,472 4,916 Gross financial debt 23,650 22,749 Net financial debt (1) 21,178 17,833 Net financial debt to assets 38% 33% Financial assets (mainly Bank Leumi s
Slide 43: Average Cap Rate and FFO / Income-Producing Real Estate Business
AVERAGE CAP RATE AND FFO / INCOME-PRODUCING REAL ESTATE BUSINESS FFO(2) (management's method) for Q3/2024 Weighted average cap rate – 6.96% attributed to the real estate business – NIS 445 million NIS in millions NIS in millions Q3 2024 Q3 2023 Total investment property, as of 47,999 NOI 586 535 30
Slide 44: Recap / Leadership, Innovation and Strength
RECAP / LEADERSHIP, INNOVATION AND STRENGTH Continued growth in the key Exceptional financial parameters of the core resilience and strength business (NOI, FFO) The Company’s operations Consistent high are predominantly in Israel occupancy rates over time SIGNIFICANT GROWTH DRIVERS: • Organic growth
Slide 45: Thank You
THANK YOU Investor Presentation, September 2024 | 45