Adgar Investment & Development Ltd. · TASE:ADGR
Adgar Investment & Development — Adgar Investments and Development — Investor Presentation (June 2015)
32 slides from Adgar Investment & Development's investor presentation, June 2015
Slide 1: Adgar Investments and Development Investor Presentation
Adgar Investments and Development Investor Presentation June 2015 1
Slide 2: Forward-Looking Information
Forward-Looking Information The information included in this presentation is information based on information included in the Company’s December 31 2014 yearly report and in the quarterly report of the Company as of March 31, 2015 as published in the MAGNA as well as on prior presentations and rep
Slide 3: The real estate arm of the Zur Shamir Holdings Group
The real estate arm of the Zur Shamir Holdings Group. 32 assets in major city centers – Toronto, Tel Aviv, Warsaw, Antwerp. 286,000 m², mainly offices. about 330 tenants. Debenture rating – A3 3
Slide 4: The Company's Strategy
The Company’s Strategy The Financial Level The Real Estate Level Significant yield gap over Location cost of finance Betterment potential; Financial flexibility Building quality Cost per m² The Administrative Level Professional management staff Local management Critical mass in eac
Slide 5: Holding structure
Zur Shamir Holdings Ltd. Direct Insurance Financial Investments Ltd. Adgar Investments and Developments Ltd. Adgar International Holdings Ltd. Additional Canadian Partnerships (1) Migdal Additional Belgian Companies Polish Companies 1) All partnerships are held at a rate of 100% and hold most Canadi
Slide 6: Key portfolio and financial metrics
Real estate with a value of 3.2 billion NIS. Equity to balance sheet ratio (less cash) of 25.9%. Loan to value ratio (LTV) of 45%. Total net financial debt to investment property and real estate under construction ratio of 65%. NOI for 1-3/2015 - 45.5 million NIS (after selling an addition
Slide 7: Geographic Breakdown by Rent for 1-3/15
Geographic Breakdown by Rent for 1-3/15 Poland 34% Canada 32% Israel 26% Belgium 8% 7
Slide 8: Sale of Properties at Book Value and Higher
Sale of Properties in at Book Value and Higher May 2012 – sale of 25% of the rights to most properties in Canadian in return for a gross sum of $99 million Canadian. Realization of capital gains to the sum of 92 million NIS. Migdal has a 19.39% investment in the Company’s activity in Poland. J
Slide 9: Cash-Generating Properties – March 31 2015
Cash-Generating Properties – March 31 2015 Building areas Occupancy Rate Book Value of Number of (Thousands of As of Properties Country Buildings Meters) March 31 2015 (Millions of NIS) Israel 6 62 95% 712 Canada 16 88 94% 878 Poland 6 107 87% (1) 1,029 Belgium 4 29 79% 204 Total 32 286 90% 2,823 (2
Slide 10: Tenant breakdown by rent share
50% 45% 40% Link 4 Belgian Govern- Thomas Cook- Pfizer 35% ment Offices Canada CIBC Polish IDI Insurance Symantec 30% Government Israeli Offices 25% Govern- Bank of Montreal ment 20% 15% 10% 5% 0% Over 5% 5% - 3% 3% - 2% 2% - 1% Under 1% State of Israel 10
Slide 11: NOI Development (in Millions of NIS)
NOI Development (in Millions of NIS) 220 200 192 (* 190 190 173 174 (* 173 171 167 150 146 124 105 100 50 Expected 2005 2006 2007 2008 2009 2010 2011 2012 *) 2013 2014 2015 NOI Forecast **) *) After selling 25% of most of the properties in Canada in May 2012 and an additional 25% in January 2014. **
Slide 12: FFO (in Millions of NIS)
FFO (in Millions of NIS) Yearly FFO Yearly FFO rate on the rate on the Basis of Basis of Q4/2016 Q4/2015 2014 2013 FFO as defined by the authority 30.2 28.4 Real FFO (*) 64 45 33.7 50.7 *) On the basis of existing rental contract (in the event of the discontinuation of a rental agreement, renewal wa
Slide 13: Shareholder Capital Development (in Millions of NIS)
Shareholder Capital Development (in Millions of NIS) 950 30 35 876 30 20 849 800 836 828 821 8 745 650 686 500 2009 2010 2011 2012 2013 2014 31.3.15 Equity Attributed to Shareholders Dividend Distribution *) In May 2015, the Company declared a dividend of $ 15 million, the dividend paid in June 2015
Slide 14: Equity to Balance Sheet Ratio (Less Cash)
Equity to Balance Sheet Ratio (Less Cash) 30% 29.0% 28.1% 27.8% 28% 27.4% 27.0% 26.3% 25.9% 26% 24.8% 24.0% 24% 21.8% 22% 20% 2009 2010 2011 2012 2013 2014 31.3.15 Ratio of Capital to Balance Sheet (Less Cash) 14
Slide 15: Financial Flexibility
Financial Flexibility Financial Debt to Investment Ratio – LTV *) 65% 60% 58% 55% 55% 51% 50% 48% 45% 46% 45% 45% 40% 2009 2010 2011 2012 2013 2014 31.3.15 *) Bank debt against pledged assets. 15
Slide 16: Principal Data – March 2015 Statements
Principal Data – March 2015 Statements (Millions of NIS) Data as of March 31 2015 March 31 2014 December 31 2014 Cash and securities 208 428 445 Investment property and real estate under construction 3,170 2,817 3,270 Total assets 3,544 3,388 3,862 Current liabilities 424 560 601 Other long-term lia
Slide 17: Principal Assets
Principal Assets 17
Slide 18: Israel
Israel Adgar Tower, Petach Tikva Area: 26,000 m² (Company share - 50%) The value of the Company’s share of the property as of March 31 2015 - 165 million NIS Occupancy rate in property as of March 31 2015 - 99% 18
Slide 19: Hashlosha Street Tel Aviv
Hashlosha Street Tel Aviv 25,000 m² Project under construction value as of March 31 2015 : 401 million NIS Main tenant - the Government of Israel - Ministry of Education Planned Occupancy rate in property as of March 31 2015 - 97% project Under construction :21,000 m² on the existing structure (Adga
Slide 20: Adgar Properties in Toronto, Canada
Adgar Properties in Toronto, Canada RANA \ 4 \ oe Sacetueat 40 Eglinton ma 39 Mowat Ave 1 Richmond St W Zag o | i Ave f co he = SS = — Qn 4 C GARDINER Brae ==, Tei \ N Fs! = a i I | fp. = ty 159 Dufferin St 55 York St LAKE SHORE BLVD W=~ 170 University Ave 20
Slide 21: Toronto, Canada
Toronto, Canada Location: Bloor 120 Building area - 21,000 m? The value of the Company’s share of the property as of March 31 2015 (at 50%) - $38 million Canadian Occupancy rate in property as of March 31 2015 - 100% 21
Slide 22: Warsaw (Mokotow) – Poland
Warsaw (Mokotow) — Poland Plaza Project Location: Postepu 17 (Adgar Plaza) Building area: 27,000 m? Value of property as of March 31 2015 ; €85 million Occupancy rate in property: 98% 22
Slide 23: Warsaw, Poland
Warsaw, Poland Adgar Park West ¢ Value of property as of March 31 2015 - €75.8 million (including land of €7.7 million) ¢ Building area: 42,000 m? * Cost to complete renovations and fit outs - €7 million ; \ | ¢ Expected annual rent , fully occupied - €6 million or + Under signed leases - 74% (an ad
Slide 24: Antwerp, Belgium
Location: Plantin en Meretuslei Building area: 9,000 m? Value of property as of March 31 2015: €20 million Occupancy rate in property as of March 31 2015 - 100% Location: Italielei 120-124 (theater building) Building area: 16,000 m? Value of property as of March 31 2015: €22 million Occupancy rate i
Slide 25: Projects Currently Underway – Israel
Projects Currently Underway – Israel 25
Slide 26: 42 Fraser
Adgar 42 Fraser Adgar 161 Liberty 7-15 Fraser/ 30 Fraser Adgar 159/173 Dufferin 2 & 20 Atlantic Adgar 2 Fraser 26
Slide 27: Projects Currently Underway – Canada
Projects Currently Underway – Canada 27
Slide 28: Summary of Projects Currently Underway
Summary of Projects Currently Underway Under signed Property Book Expected Expected Added leases Value March 31 Completion Cost, NOI As of March 31 2015 Fully Finished Completion Fully Occupied Country Project Name 2015 (Millions of NIS) (Millions of NIS) Date (In Millions of NIS) Added floors Israe
Slide 29: Planned Projects
Planned Projects 33 Ef’al, Building C Land Adjacent to ABC-II Petach Tikva Hashlosha Street Tel Aviv Building, Poland The lot has 20,000 The Company has The option of m² of construction construction rights to opening a data rights; the Company construct 17,000 m² of center on land near is acting to
Slide 30: Planned Projects
Planned Projects Adgar Park West Adgar Park West Canada - Liberty Poland Building D Poland Building A The Company is The Company is The Company is working to receive a working to receive a working to receive building permit for building permit for rights to construct the construction of the construc
Slide 31: Summary
Summary Y High-quality office buildings. Y Geographic spread in stable markets. Y Years of business focus. Y Material added revenues from existing properties Y Financial flexibility. 31
Slide 32: Thank You
Thank You 32
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