Gav-yam Lands Corp. Ltd · TASE:GVYM
Gav-yam Lands — Q3 2023 Earnings Presentation
53 slides from Gav-yam Lands's earnings presentation, Sep 30, 2023
Slide 1: Presentation for the Capital Market | Q3
PRESENTATION FOR THE CAPITAL MARKET | Q3 1
Slide 2: About Gav-Yam (Jan-Sep 2023)
Main activity About Gav-Yam (Jan-Sep 2023) ILS 560 million revenue enue from leased ILS 489 million 9% ILS 443 million properties and NOI increase ease in same s property NOI cashflow from current activity management fees ILS 422 million net profit for ILS 300million FFO for shareholders shareholder
Slide 3: About Gav Yam (as of Sep 2023)
Main activity About Gav Yam (as of 30 Sep 2023) ILS 3.0 billion backlog re revenues enues ILS backlog 1.4 billion acklog revenues rev nues from fro 1.2 million m2 98% from leases without leases for executed income-generating ncome- areas occupancy rate development properties agreements in developmen
Slide 4: About Gav Yam (as of Sep 2023)
Main activity About Gav Yam (as of 30 Sep 2023) ILS 10.9billion income-generating 1.3% weighted avg effectiv interest, effective ILS equity 4.2 billion ty for shareholders sh ILS 663 million liquid assets as property value index-linked 6.6% Bond rating avg. capitalization rate for value of income- i
Slide 5: Executed Agreements for existing properties (Jan-Sep 2023)
Main activity Executed Agreements for existing properties (Jan-Sep 2023) 99 lease agreements for a total area of 13% 129,000 m2 aboveground, generating Tenant replacement 14% ILS 98 million per year, reflecting a real Real increase increase, in excess of the index increase 32% (offsetting TI) of 10%
Slide 6: Executed Agreements for existing properties Q3 2023
Main activity Executed Agreements for existing properties Q3 2023 26 lease agreements for a total area of 44,000 m2 aboveground, generating 15% ILS 35 million per year, reflecting a real Tenant replacement 24% 43% Contract ntract renewal rene increase, in excess of the index increase Real increase 1
Slide 7: Development projects
Main activity Development 12 development projects, with a total area of 490,000 m2, total investment of ILS 4.9 billion (ILS 3.9 billion without land), which derive additional representative annual income of ILS 378 million. Expected return from these projects is 7.7%. To date the company has market
Slide 8: Projects ending in 2023
Main activity Projects ending in 2023 1. Matam East #2 - 48,000 m2, annual revenue of ILS 33 million - completed and fully occupied. 2. Rav Bariach #1 - 41,000 m2 (28,000 m2 company’s share), annual revenue of ILS 12 million; completed and fully occupied. 3. Gav-Yam Haifa Bay logistics center #4 - 2
Slide 9: NOI Jan-Sep 2023
Main activity Jan-Sep 2023 1-9.2023 1-9.2022 Increase change % NOI 489 411 78 19% *figures in ILS millions Projected NOI for 2023 ILS 640-655 million, an increase of 18% (ILS 100 million) compared to 2022. 9
Slide 10: FFO Jan-Sep 2023
Main activity Jan-Sep 2023 1-9.2023 1-9.2022 גידול שיעור השינוי FFO 300 230 70 30% לפי גישת ההנהלה FFO 177 91 86 95% לפי גישת רשות ניירות ערך *figures in ILS millions FFO projected for 2023 ILS 380-400 million, increase of 28% (ILS 90 million) compared to 2022. 10
Slide 11: Q3 2023 NOI and FFO
Main activity Q3 2023 7-9.2023 7-9.2022 Increase change % NOI 171 142 29 20% FFO 102 81 21 26% PER MANAGEMENT FFO 73 42 31 74% PER ISRAEL SECURITIES AUTHORITY *figures in ILS millions Leverage = 54.8% Cash flow from current activity at Q3 end 2023 totaled ILS 443 million, compared to ILS 333 million
Slide 12: Urban building plans under planning and licensing procedures
Main activity Urban building plans (UBS) under planning and licensing procedures UBS Current situation Updated condition Status 400 residential units 1 Herzliya North 55,000 m2 UBS in planning process. 45,000 m2 business and retail 400 residential units Approval in principle by local committee for 2
Slide 13: Income-generating property value (ILS 10,949 million)
Income-generating property value (ILS 10,949 million) 6.6% weighted rate of return 1.2 million m2 ILS 2,414 million weighted average 6.0% rate of return ILS 8,015 million 285,000 m2 22% Logistics and 6.6% weighted average rate of return industry 822,000 m2 ILS 520 million 73% high-tech parks and off
Slide 14: The Company's Customers
The Company's CUStOMETS mms amazon WIX €Q) Gnwia RAFAEL Medtronic Ometoole emesis Mmobileyey GYARvEP Google $@ Microsoft PHILIPS D@LLEMC jntel. & merck GANCR ¥9 Texas INstruMENTS 6 Lightricks trax piusson ORACLE (Pfizer) NOVA feidos EDM Yikevce WP Appsflyer Johnson&Johnson SIEMENS Qi] ( cYBERARK aly
Slide 15: 18 cities high-tech, logistics and industry parks
18cities 22 high-tech, logistics and industry parks 98% occupancy rate 15
Slide 16: Financial Data
F I NAN CI AL FINANCIAL DATA DATA 16
Slide 17: Financial results for Jan-Sep 2023
Financial results for Jan-Sep 2023 (ILS millions) 1,108 802 560 476 489 439 430 422 411 404 300 230 177 91 REVENUE NOI NOI SAME FAIR VALUE NET FFO FOR FFO FOR FROM LEASED PROPERTY INCREASE OF SHAREHOLDER SHAREHOLDERS SHAREHOLDERS PROPERTIES AND INVESTMENT REAL PROFIT PER PER ISRAEL MANAGEMENT FEES E
Slide 18: Growth in NOI
Growth in NOI (ILS millions) 18% n ) i llio 0 m 1 0 72% I(LS 640-655 3 2 mi l l i o n ) 516 522 555 19% (ILS 2 490 441 n ) 406 430 i llio 377 8 m 349 7 323 333 I(LS 489 411 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 תחזית 1-9.22 1-9.23 18
Slide 19: Growth in FFO for shareholders per management
Growth in FFO for shareholders per management (ILS millions) FFO per Israel Securities * Authority; see p. 10 28% n ) i llio 0 m 9 I(LS 380-400 132% on ) 313 30% 8 m i l l i 253 I( LS 17 240 n) 231 i llio 0 m 199 7 300 170 187 I(LS 159 230 135 132 132 177 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 20: Shareholder equity
Shareholder equity (ILS millions) 187% 3,611 3,972 4,207 i o n ) , 74 3 mill (ILS 2 2,710 2,774 2,347 2,444 1,965 1,748 1,505 1,591 1,464 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2022 30.09.2023 20
Slide 21: Distribution of real estate value for investment
Distribution of real estate value for investment (ILS 13,714 million) As of 30 Sep 2023 16% 2,163 real estate under construction 80% 4% 10,949 income-generating 602 0 lands real estate 21
Slide 22: Gross financial debt (ILS 7,325 million)
Gross financial debt (ILS 7,325 million) As of 30 Sep 2023 1.3% weighted effective interest, index-linked 34% fixed ILS 2,477 3.7 weighted duration d 66% index linked 4,848 in years 22
Slide 23: Debt principal repayment schedule
Debt principal repayment schedule (ILS millions) As of 30 Sep 2023 2,401 1,333 1,310 1,128 707 433 13 2023 2024 2025 2026 2027 2028 2029-2035 23
Slide 24: Financial data
Financial data (ILS millions) Consolidated 1-9/2023 1-9/2022 Change in % NOI 489 411 19 Same Property NOI 439 404 9 Increase in fair value of investment real estate 430 1,108 (61) Cashflows from current activity 443 333 33 Net profit for shareholders* 422 802 (47) FFO for shareholders per management
Slide 25: Financial data
Financial data (ILS millions) Consolidated 30/09/2023 31/12/2022 Liquid Assets 663 1,616 Fair value of investment property of which: 13,714 12,353 Real estate under construction 2,163 1,908 Land 602 608 Income-generating real estate 10,949 9,837 Other properties 438 521 Total assets 14,815 14,490 25
Slide 26: Financial data
Financial data (ILS millions) Consolidated 30/09/2023 31/12/2022 Financial debt, gross 7,325 7,494 Other liabilities 346 284 Reserve for deferred taxes 1,647 1,569 Equity attributed to shareholders 4,207 3,976 Non-controlling interests* 1,290 1,167 Total equity and liabilities 14,815 14,490 *Share a
Slide 27: Financial data
Financial data (ILS millions) 30/09/2023 31/12/2022 Change in % Investment real estate 13,714 12,353 11 Net financial debt 6,662 5,878 14 Leverage rate 54.8% 53.3% 2 Shareholder equity 4,207 3,976 6 27
Slide 28: Financial data (standalone extended)
Financial data (ILS millions) Standalone extended* 1-9/2023 1-9/2022 Change in % NOI 399 340 17 Same Property NOI 366 333 10 Increase in fair value of investment real estate 298 885 (66) Net financing expenses 177 213 (17) Tax expenses 71 183 (61) Net profit 422 802 (47) FFO to shareholders per mana
Slide 29: Financial data (standalone extended)
Financial data (ILS millions) Standalone extended* 30/09/2023 31/12/2022 Liquid assets 545 1,459 Fair value of investment property of which: 11,515 10,398 Real estate under construction 2,065 1,664 Land 453 464 Income-generating real estate 8,998 8,270 Other properties 398 486 Total assets 12,458 12
Slide 30: Financial data (standalone extended)
Financial data (ILS millions) Standalone extended* 30/09/2023 31/12/2022 Financial debt, gross 6,835 7,036 Other liabilities 80 46 Reserve for deferred taxes 1,336 1,285 Equity 4,207 3,976 Total capital and liabilities 12,458 12,343 *Standalone extended = share attributed to shareholders (Matam 50.1
Slide 31: Projects in Development
P ROJE CT S IIN PROJECTS N D E V E LO P M E N T DEVELOPMENT 31
Slide 32: Projects under construction, consolidated
Financial data around 56% of the total aboveground areas of the projects under construction have been marketed (ILS millions) Annual Rate of Revenue for Construction Above- Parking Holding Other costs as representative marketed marketed Completion Consolidated Total Total costs (including ground lot
Slide 33: Projects under construction, standalone extended
Financial data around 56% of the total aboveground areas of the projects under construction have been marketed (ILS millions) Standalone Annual Rate of Revenue for Construction Above- Other costs as of representative marketed marketed Completion Parking lot Total costs (including ground 30 Sep 2023
Slide 34: Matam Towers East #3
MATAM East #3 MATAM Towers East #3 Area 42,500 m2 of which 29,500 m2 aboveground Completion date Q3 2025 Total cost ILS 335 million NOI ILS 31 million Return 9.3% Figures are 100% (Gav Yam’s share 50.1%) * The images are for illustration purposes only 34
Slide 35: Raanana
RAANANA Area 72,600 m2 32% marketed (50,400 m2 company’s share) of which 40,000 m2 aboveground (28,000 m2 company’s share) Completion date Q4 2023 Total cost (company’s share) ILS 412 million NOI ILS 29 million Return 7.1% * The images are for illustration purposes only 35
Slide 36: Hebrew Campus
Area 89,000 m2 (59,000 m2 company’s share) of which 57,000 m2 aboveground (38,000 m2 company’s share) Completion date Building #1 Building #2 Q4 2024 40% marketed Total cost (company’s share) ILS 689 million NOI ILS 51 million Return 7.4% * The images are for illustration purposes only 36
Slide 37: Gav-Yam O2
Area 60,000 m2 of which fully marketed to an international company 38,000 m2 aboveground Completion date Q4 2025 Total cost ILS 667 million NOI ILS 43 million Return 6.4% * The images are for illustration purposes only 37
Slide 38: TOHA 2
Area 205,000 m2 of which 160,000 m2 aboveground Completion date Q4 2026 Total cost ILS 3.1 billion NOI ILS 280 million Return 9.0% Figures are 100% (Gav Yam’s share 50%) * The images are for illustration purposes only 38
Slide 39: Holon Building #3
HOLON 88% marketed to Building #3 Government Complex Area 44,000 m2 of which 22,000 m2 aboveground Completion date Q2 2024 Total cost ILS 346 million NOI ILS 21 million Return 5.9% * The images are for illustration purposes only 39
Slide 40: Haifa Bay 5
HAIFA BAY 5# fully marketed to Almog Building #5 Area 7,800 m2 Completion date Q3 2024 Total cost ILS 66 million NOI ILS 5 million Return 7.0% * The images are for illustration purposes only 40
Slide 41: Ashkelon Rav Bariach #2
ASHKELON Rav Bariach #2 Fully marketed Area 55,000 m2 Completion date Building #2 Q1 2026 Total cost ILS 397 million NOI ILS 24 million Return 6.0% Figures are 100% (Gav-Yam’s share 70.0%) * The images are for illustration purposes only 41
Slide 42: Negev
NEGEV 21% marketed to international fund Area 15,000 m2 Completion date Q1 2025 Total cost ILS 107 million NOI ILS 9 million Return 8.5% Figures are 100% (Gav-Yam’s share 73.25%) * The images are for illustration purposes only 42
Slide 43: Rehovot Building #5
REHOVOT marketed to an Building #5 international company Area 39,000 m2 (28,000 m2 company’s share) of which 24,000 m2 aboveground (17,000 m2 company’s share) Completion date Q1 2025 Total cost (company’s share) ILS 195 million NOI ILS 14 million Return 7.2% * The images are for illustration purpose
Slide 44: Urban Building Plans
URBAN U R BA N BUILDING B U IL DIN G PLANS P L ANS 44
Slide 45: Herzliya North
HERZLIYA NORTH Current status 55,000 m2 constructed (excluding O2) Planned status 400 residential units 45,000 m2 business 45
Slide 46: Herzliya North
HERZLIYA NORTH Current status 55,000 m2 constructed (excluding O2) Planned status 400 residential units 45,000 m2 business * The images are for illustration purposes only 46
Slide 47: Historic Rehovot
HISTORIC REHOVOT Current status 5,000 m2 Planned status 400 residential units 50,000 m2 business 10,000 m2 retail 47
Slide 48: Historic Rehovot
HISTORIC REHOVOT Current status 5,000 m2 Planned status 400 residential units 50,000 m2 business 10,000 m2 retail * The images are for illustration purposes only 48
Slide 49: Acre
GAV~ YAM Current status GAV" YAM 49
Slide 50: Acre
ACRE Planned status About 1,000 residential units *ההדמיה להמחשה בלבד * The images are for illustration purposes only 50
Slide 51: Holon
HOLON Current status 60,000 m2 constructed Planned status 850 residential units 500,000 m2 business 60,000 m2 industry and retail 51
Slide 52: Holon
HOLON Current status 60,000 m2 constructed Planned status 850 residential units 500,000 m2 business 60,000 m2 industry and retail * The images are for illustration purposes only 52
Slide 53: Forward-looking information
Forward-looking information This presentation includes forecasts, assessments, estimates and other information relating to future events and matters, while there is uncertainty regarding the degree to which they might materialize and which are outside the company’s exclusive control (forward-looking