Gav-yam Lands Corp. Ltd · TASE:GVYM
Gav-yam Lands — Q3 2024 Earnings Presentation
71 slides from Gav-yam Lands's earnings presentation, Sep 30, 2024
Slide 1: Presentation for the Capital Market 3rd Quarter
PRESENTATION FOR THE CAPITAL MARKET 3RD QUARTER T 1
Slide 2: The world's largest technology companies choose Gav-Yam
The world’s largest technology companies choose Gav-Yam Total area 300,000 sqm, total revenue ILS 340 million Revenue from these customers constitutes 35% of Gav-Yam’s representative revenue* * After completion of projects under development 2
Slide 3: Israel's largest defense companies choose Gav-Yam
Israel’s largest defense companies choose Gav-Yam KRATOS GENERAL MICROWAVE Microwave Electronics Division KRATOS GENERAL MICROWAVE Microwave Electronics Division Total area 80,000 sqm Total revenue ILS 60 million Revenue from these customers constitutes 6% of Gav-Yam’s representative revenue* * Afte
Slide 4: 5 major deals in the shadow of war
5 major deals in the shadow of war Agreements executed for projects under development in the last year GOOGLE GENERAL MICROWAVE GOVERNMENT COMPLEX TECH COMPANY DRIVENETS TOHA 2 GAV-YAM HEBREW CAMPUS GAV-YAM HEBREW CAMPUS GAV-YAM REHOVOT PARK #5 GAV-YAM RAANANA PARK ABOVEGROUND AREA ABOVEGROUND AREA
Slide 5: Government complex
Government complex Tenant 80% marketed Aboveground leased area KRATOS GENERAL MICROWAVE 13,000 sqm Microwave Electronics Division Annual revenue Building #1 Building #2 ILS 15 million Project completion Q4 2024 Figures 100% (Gav-Yam share 66%) * The images are for illustration purposes only 5
Slide 6: The Google transaction
The Google transaction Tenant Aboveground leased area 60,000 sqm Annual revenue ILS 115 million (shell-and-core level) Date of completion of the project Q4 2026 Data for 100% (Gav-Yam’s share 50%) 6
Slide 7: Main activity: About Gav-Yam (Jan-Sep 2024)
Main activity About Gav-Yam (Jan-Sep 2024) 1.2 million sqm 360,000 sqm 1.5 million sqm 450,000 sqm Building rights available income-generating areas areas under development income-generating areas for construction of income- + under development generating properties ILS 533 million revenue from ILS
Slide 8: Main activity: About Gav-Yam (as of Sep 2024)
Main activity About Gav-Yam (as of 30 Sep 2024) ILS 3.3 billion ILS1.5 billion 4.8 billion revenue backlog from leases without properties revenue backlog from leases for executed under ILS forecast of revenue backlog from leases for income- generating properties + 400 customers under development dev
Slide 9: Main activity: About Gav-Yam (as of Sep 2024)
Main activity About Gav-Yam (as of 30 Sep 2024) ILS 306 million FFO for shareholders per ILS 373million net profit for ILS 453million cashflow from 56.4% leverage management approach* shareholders current activity 95% occupancy rate 1.69% weighted avg effective interest, ILS 1.3 billion liquid asset
Slide 10: Main activity
Main activity Real increase in rent Jan-Sep 2024 95 lease agreements on total area renewal contract 14% of 110,000 sqm aboveground, real increase generating ILS 91 million per year, 34% with a real increase, in excess of the index increase (and offsetting TI) of 9.7%. In Q3 2024, 27 lease agreements
Slide 11: Project completion - Jan-Sep 2024
Main activity Project completion - Jan-Sep 2024 RAANANA Area 40,000 sqm 33,000 sqm underground Total 51,000 sqm (company’s share) NOI ILS 32 million (company’s share) 58% occupancy rate october 2024 11
Slide 12: Under development as of Sep 2024
Main activity Under development as of 30 Sep 2024 9 projects under development, total area 360,000 sqm, total investment ILS 4.3 billion (ILS 3.4 billion without land), which generate ILS 335 million in additional representative annual revenue. Projected return from these projects 7.8%. Upon complet
Slide 13: Realized properties
Main activity Realized properties HOLON #2 (company’s share) Area 6,000 sqm aboveground + parking lot Consideration ILS 78 million 13
Slide 14: NOI Jan-Sep 2024
Main activity NOI Jan-Sep 2024 NOI 1-9.2024 1-9.2023 Increase % change 5% 514 NOI 514 489 25 5% 489 *figures in ILS millions Projected NOI for 2024 ILS 685-690 million The lower threshold in the forecast did not change, the upper threshold changed from ILS 705 million to ILS 690 million, mainly due
Slide 15: FFO Jan-Sep 2024
Main activity FFO Jan-Sep 2024 FFO PER MANAGEMENT 1-9.2024 1-9.2023 Increase % change APPROACH FFO 306 300 6 2% PER MANAGEMENT APPROACH 2% FFO 306 PER ISRAEL SECURITIES 158 177 )19( )11%( AUTHORITY APPROACH 300 *figures in ILS millions • Projected FFO, per management, for 2024 - ILS 395-405 million.
Slide 16: Debt Raising
Debt Raising In 2024, the company and its subsidiaries raised ILS 2.2 billion in debt, with a weighted avg. duration of 3.8 years, at a weighted avg. interest rate of 3%, linked to the consumer price index. ILS 300 million ILS 743 million 1.585% interest, index-linked 3.34% interest, index-linked Ga
Slide 17: PV installations
PV installations Number of Representative System capacity Construction cost annual revenue (ILS System status systems (MW) (ILS millions) Annual return million) Income-generating 30 Sep 2024 46 8.3 37.2 5.5 14.8% In development 7 1.4 5.3 0.9 16% Dec ’24 forecast 53 9.7 42.5 6.4 14.9% Dec ’25 forecas
Slide 18: Financial Data
FINANCIAL DATA *ההדמיה להמחשה בלבד
Slide 19: Financial data Jan-Sep 2024
Financial data Jan-Sep 2024 (ILS millions) 594 560 514 489 475 457 430 422 357 373 300 306 177 158 REVENUE FROM NOI SAME PROPERTY FAIR VALUE NET SHAREHOLDER FFO FOR FFO FOR LEASED PROPERTIES NOI INCREASE OF PROFIT SHAREHOLDERS SHAREHOLDERS PER AND MANAGEMENT INVESTMENT REAL PER MANAGEMENT ISRAEL SEC
Slide 20: Growth in NOI
Growth in NOI (ILS millions) 685-690 88% 657 i l l i o n ) (ILS 308 m 555 516 522 514 490 489 430 441 406 377 349 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1-9.2023 1-9.2024 Forecast 2024 20
Slide 21: Growth in FFO for shareholders per management approach
Growth in FFO for shareholders per management Approach (ILS millions) 204% 395-405 401 i o n ) 69 mill ILS 2 ( 313 306 300 253 231 240 199 187 159 170 132 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1-9.2023 1-9.2024 Forecast 2024 * FFO per Israel Securities Authority approach see p. 14. 21
Slide 22: Shareholder equity
Shareholder equity (ILS millions) 4,474 184% 3,976 4,205 ) 3,611 ill i o n 9 20 m S 2 , (IL 2,710 2,774 2,347 2,444 1,965 1,748 1,591 110 120 150 180 180 200 200 260 570 275 240 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 31.12.2023 30.09.2024 S
Slide 23: Distribution of real estate value for investment
Distribution of real estate value for investment (ILS 15,052 million) As of 30 sep 2024 19% 2,915 real estate under construction* 77% 4% * 11,532 605 income-generating lands real estate* * Includes Gav-Yam Holon #2 23
Slide 24: Financial strength
Financial strength Change in weighted capitalization relative As of 30 sep 2024 to change in weighted interest rate for the company 7.45% 7.38% Weighted capitalization rate Weighted avg. effective interest, index linked Marginal cost of capital 3.34% for debenture 6.95% series K, avg. duration 4 yea
Slide 25: Gross financial debt
Gross financial debt (ILS 8,913 million) As of 30 Sep 2024 1.69% weighted effective 27% fixed ILS interest, index-linked 2,387 3.3 weighted duration 73% index linked 6,526 in years 25
Slide 26: Debt principal repayment schedule
Debt principal repayment schedule (ILS millions) As of 30 Sep 2024 1,757 1,532 1,064 976 707 707 522 522 522 256 274 74 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 26
Slide 27: Financial data
Financial data (ILS millions) Consolidated 1-9/2024 1-9/2023 Change in % NOI 514 489 5 Same Property NOI 475 457 4 Fair value increase of investment real estate 357 430 )17( Cashflows from current activity 453 443 2 Net financing expenses* 234 189 24 Tax expenses 89 118 )25( Net profit for sharehold
Slide 28: Financial data
Financial data (ILS millions) Consolidated 30/9/2024 31/12/2023 Liquid Assets 1,296 1,006 Fair value of investment property of which: 15,052 13,988 Real estate under construction 2,915 2,398 Land 605 608 Income-generating real estate 11,532 10,982 Other properties 620 433 Total assets 16,968 15,427
Slide 29: Financial data
Financial data (ILS millions) Consolidated 30/9/2024 31/12/2023 Financial debt, gross 8,913 7,911 Other liabilities 442 334 Reserve for deferred taxes 1,730 1,666 Equity attributed to shareholders 4,474 4,205 Non-controlling rights * 1,409 1,311 Total equity and liabilities 16,968 15,427 * Share att
Slide 30: Financial data
Financial data (ILS millions) Consolidated 30/9/2024 31/12/2023 Investment real estate 15,052 13,988 Net financial debt 7,617 6,905 Leverage rate 56.4% 55.6% Shareholder equity 4,474 4,205 30
Slide 31: Financial data
Financial data (ILS millions) Standalone extended** 1-9/2024 1-9/2023 Change in % NOI 411 399 3 Same Property NOI 383 370 4 Fair value increase of investment real estate 254 299 )15( Net financing expenses* 215 177 21 Tax expenses 53 74 )28( Net profit 373 422 )12( FFO to shareholders per management
Slide 32: Financial data
Financial data (ILS millions) Standalone extended** 30/9/2024 31/12/2023 Liquid assets 1,137 892 Fair value of investment property of which: 12,703 11,785 Real estate under construction 2,814 2,230 Land 455 458 Income-generating real estate 9,434 9,097 Other properties 579 383 Total assets 14,419 13
Slide 33: Financial data
Financial data (ILS millions) Standalone extended** 30/9/2024 31/12/2023 Financial debt, gross 8,288 7,404 Other liabilities 266 99 Reserve for deferred taxes 1,391 1,352 Equity 4,474 4,205 Total capital and liabilities 14,419 13,060 * Standalone extended = share attributed to shareholders (Matam 50
Slide 34: Income-Generating Properties
INCOME- GENERATING PROPERTIES 34
Slide 35: High-tech parks, logistics and industry
19 HAIFA AFULA TIRAT HACARMEL HIGH-TECH PARKS CAESAREA logistics and industry RAANANA 16 HERZLIYA TEL AVIV HOLON BEER YAAKOV LOD NESS ZIONA MODI'IN cities REHOVOT JERUSALEM YAVNE 95% occupancy rate BEER SHEVA 35
Slide 36: Income-generating value (ILS 11,532 million)
Income-generating value (ILS 11,532 milion) 6.8% weighted ROI 1.2 million sqm 19% ILS 2,224 million* Logistics and industry weighted average 6.2% rate of return ILS 8,777 million* 253,000 sqm 6.8% weighted average rate of return 845,000 sqm * Includes Gav-Yam Holon #2 ILS 531 million 8.0% weighted a
Slide 37: Projects in development
Projects in development Total area of projects in development - 360,000 sqm consolidated, total investment of ILS 4.2 billion Gav-Yam Haifa Bay #5 Matam East Towers #3 8,000 sqm 43,000 sqm 100% marketed 3% marketed HAIFA The server farm TOHA 2 14,000 sqm (at MW10 supply) 101,000 sqm 100% marketed 38
Slide 38: Projects in development
Projects in development 60% of the total aboveground areas of the projects under construction have been marketed Jan-september 2024 Annual Rate of Revenue for Construction Above- Parking Holding Other costs as representative marketed marketed Completion Consolidated Total Total costs (including grou
Slide 39: Projects in development
Projects in development 60% of the total aboveground areas of the projects under construction have been marketed (ILS millions) Standalone Construction Annual Rate of Revenue for extended Above- Balance of costs representative marketed marketed Completion • ground Parking lot Total costs (including
Slide 40: Segmented NOI from existing income-generating properties
Segmented NOI from existing income-generating properties ILS 514 million Jan-Sep 2024 ILS 169 million 32% 35% ILS Other 178 million Matam Park 25% 8% ToHa1 Gav-Yam Herzliya ILS ILS 41 126 million million 40
Slide 41: Segmented projected NOI from projects under development
Segmented projected NOI from projects under development ILS 330 million per year of which ILS 190 million in executed contracts ILS 46 million )of which ILS 46 million marketed( ILS150 14% 45% million Gav-Yam )of which ILS 58 million marketed( Herzliya ToHa2 14% Other* ILS47 million )of which ILS 39
Slide 42: Segmented projected NOI after completion of projects under development
Segmented projected NOI after completion of projects under development ILS 1.0 billion per year (1.5 million sqm) ILS 260 million ILS 26% 210 million 21% Gav-Yam Other Herzliya ILS Gav-Yam Hebrew Campus 5% 50 million 20% ToHa 28% Matam Park ILS 200 million ILS 280 million 42
Slide 43: Holon
HOLON 92% marketed to Building #3 Government Complex Area 35,000 sqm of which 21,000 sqm aboveground Completion date Q4 2024 Total cost ILS 325 million NOI ILS 19 million Return 5.8% * The images are for illustration purposes only 43
Slide 44: Holon construction progress
HOLON Construction progress OCTOBER 2024 44
Slide 45: Hebrew Campus
Area 80% marketed 88,000 sqm (58,000 sqm company’s share) of which 56,000 sqm aboveground KRATOS GENERAL MICROWAVE (37,000 sqm company’s share) Microwave Electronics Division Completion date Building #1 Building #2 Q4 2024 Total cost ILS 724 million NOI ILS 48 million Return 6.6% * The images are fo
Slide 46: Construction progress
Construction progress Building #1 Building #2 OCTOBER 2024 46
Slide 47: Haifa Bay 5
HAIFA BAY 5# fully marketed to Almog Building #5 Area 8,000 sqm Completion date Q4 2024 Total cost ILS 69 million NOI ILS 4.8 million Return 7.0% * The images are for illustration purposes only 47
Slide 48: Haifa Bay 5 construction progress
HAIFA BAY 5# Construction progress OCTOBER 2024 48
Slide 49: Negev
NEGEV 23% marketed to international fund Area 15,000 sqm Completion date Q1 2025 Total cost ILS 113 million NOI ILS 9 million Return 8.0% Figures are 100% (Gav-Yam’s share 73.25%) * The images are for illustration purposes only 49
Slide 50: Negev construction progress
NEGEV Construction progress OCTOBER 2024 50
Slide 51: Rehovot Building #5
REHOVOT fully marketed to an international Building #5 high tech company Area 39,000 sqm (28,000 sqm company’s share) of which 24,000 sqm aboveground (17,000 sqm company’s share) Completion date Q1 2025 Total cost ILS 201 million NOI ILS 14 million Return 7.0% * The images are for illustration purpo
Slide 52: Rehovot construction progress
REHOVOT Construction progress OCTOBER 2024 52
Slide 53: Data Center
DATA CENTER Area 14,000 sqm Completion date Q3 2027 100% marketed Total cost ILS 150 million NOI ILS 12 million Figures are 100% (Gav-Yam’s share 50.1%) 53
Slide 54: Gav-Yam O2
Area 61,000 sqm of which fully marketed to an international company 39,000 sqm aboveground Completion date Q2 2026 Total cost ILS 707 million NOI ILS 46 million Return 6.4% * The images are for illustration purposes only 54
Slide 55: Construction progress
Construction progress OCTOBER 2024 55
Slide 56: Matam Towers East #3
MATAM East #3 MATAM Towers East #3 Area 42,500 sqm of which 29,500 sqm aboveground Completion date Q4 2026 Total cost ILS 339 million NOI ILS 31 million Return 9.1% Figures are 100% (Gav Yam’s share 50.1%) * The images are for illustration purposes only 56
Slide 57: Construction progress
Construction progress OCTOBER 2024 57
Slide 58: ToHa 2
38% marketed to Area 201,000 sqm of which 156,000 sqm aboveground Completion date Q4 2026 Total cost ILS 3.3 billion NOI ILS 300 million Return 9.1% Figures are 100% (Gav Yam’s share 50%) * The images are for illustration purposes only 58
Slide 59: Construction progress
Construction progress 61 35 OCTOBER 2024 59
Slide 60: Gav-Yam and Amot purchasing properties bordering the ToHa complex
TOHA #2 Gav-Yam and Amot are TOHA #3 purchasing properties bordering the ToHa complex, in order to further develop and increase building rights TOHA #1 in the complex, for purpose of constructing ToHa #3. 60
Slide 61: Projects at planning and licensing stages
Projects at planning and licensing stages HAIFA Total 61000 m2 Matam Park Central #1 16,000 sqm aboveground Herzliya North Western Building #1 10,000 sqm parking lot 11,000 sqm aboveground HERZLIYA Gav-Yam Park Rehovot #6 REHOVOT Gav-Yam Hebrew Campus #3 15,000 sqm aboveground JERUSALEM 25,000 sqm a
Slide 62: Gav-Yam Residential
GAV-YAM RESIDENTIAL 62 *ההדמיה להמחשה בלבד
Slide 63: Residential properties
Residential properties Total of 5,700 residential units Acre 1,000 units Kiryat Yam – Urban Renewal 1,500 units Matam-Lot 8001 ACO 350 units KIRYAT YAM Afula 150 units HAIFA AFULA Tel Aviv - Dafna Project - Urban Renewal 360 units (company’s share) Herzliya North - Micro Units 400 units HERZLIYA Tel
Slide 64: Residential
Residential Project/Town Building Plan Residential units (company’s share) Urban renewal – Tel Aviv – Dafna – complex 505 102 (incl. 21 rental units) construction and marketing: Kiryat Ono #1 48 Tel Aviv – Dafna – complex 501 171 (incl. 35 rental units) Urban renewal - Tel Aviv – Dafna – complex 502
Slide 65: Residential
Residential Under construction Short term (1-2 years) Mid term (3-4 years) Long term (5 years +) Complex 505 – Dafna Complex 501 – Dafna Complex 502 – Dafna Kiryat Ono #1+#2 Kiryat Ono #1 Herzliya North #1 Petach Tikva – Ramat Verber Holon (parcel 21) Projects Beer Sheva Holon (parcel 27) Old Rehovo
Slide 66: Tel Aviv - Dafna Complex
TEL AVIV - DAFNA COMPLEX 505 Residential units 232, of which 124 for sale, 76 to the rights holders and 32 rental units Retail 300 sqm Projected revenue ILS 827 million Projected expenses ILS 695 million Projected profit ILS 132 million Projected profit, Gav-Yam’s share ILS 49 million* Data for 100%
Slide 67: Herzliya North #1
HERZLIYA Herzliya North #1 Units 300, total 15,000 sqm for marketing * The images are for illustration purposes only 67
Slide 68: Tel Aviv
TEL AVIV LOT 300 Joint project with equal share between Gav-Yam and Amot Units 50 units (company’s share) * The images are for illustration purposes only 68
Slide 69: Tel Aviv - Dafna Complex
TEL AVIV - DAFNA COMPLEX 501 Units 391, of which 209 for sale, 128 for rights holders and 54 for rent Data for 100% (Gav-Yam’s share 65%) * The images are for illustration purposes only 69
Slide 70: Kiryat Ono #2
KIRYAT ONO #2 Units 107 units * The images are for illustration purposes only 70
Slide 71: 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