Adgar Investment & Development Ltd. · TASE:ADGR
Adgar Investment & Development — Adgar Investments and Development — Investor Presentation (March 2015)
33 slides from Adgar Investment & Development's investor presentation, March 2015
Slide 1: Adgar Investments and Development Investor Presentation
Adgar Investments and Development Investor Presentation March 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 as published in the MAGNA as well as on prior presentations and reports published by the Company and cannot replace study of the Co
Slide 3: The real estate arm of the Zur Shamir Holdings Group
The real estate arm of the Zur Shamir Holdings Group. 31 assets in major city centers – Toronto, Tel Aviv, Warsaw, Antwerp. 283,000 m², mainly offices. about 300 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: Group 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: Real estate value, equity ratio and LTV
Real estate with a value of 3.3 billion NIS. Equity to balance sheet ratio (less cash) of 27%. Loan to value ratio (LTV) of 46%. Total net financial debt to investment property and real estate under construction ratio of 64%. NOI for 2014 – 173 million NIS (after selling an additional 25%
Slide 7: Geographic Breakdown by Rent for 1-12/14
Geographic Breakdown by Rent for 1-12/14 Poland 34% Canada 30% Israel 26% Belgium 10% 7
Slide 8: Sale of Properties in Canada 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 – December 31 2014
Cash-Generating Properties – December 31 2014 Building areas Occupancy Rate Book Value of Number of (Thousands of As of Properties Country Buildings Meters) December 31 2014 (Millions of NIS) Israel 6 61 94% 701 Canada 15 86 95% 916 Poland 6 107 89% (1) 1,122 Belgium 4 29 86% 226 Total 31 283 2,965
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) 235 205 200 192 (* 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 (*) 70 52 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 8 745 650 686 500 2009 2010 2011 2012 2013 2014 Equity Attributed to Shareholders Dividend Distribution 13
Slide 14: Equity to Balance Sheet Ratio (Less Cash)
Equity to Balance Sheet Ratio (Less Cash) 30% 29.0% 28.1% 28% 27.4% 27.0% 26.3% 26% 24.8% 24.0% 24% 21.8% 22% 20% 2009 2010 2011 2012 2013 2014 Ratio of Capital to Balance Sheet (Less Cash) Ratio of Capital to Balance Sheet (Less Cash) Attribution of Migdal Loan to Capital 14
Slide 15: Financial Flexibility
Financial Flexibility Financial Debt to Investment Ratio – LTV *) 65% 60% 58% 55% 55% 51% 50% 48% 45% 46% 45% 40% 2009 2010 2011 2012 2013 2014 *) Bank debt against pledged assets. 15
Slide 16: Principal Data – December 2014 Statements
Principal Data – December 2014 Statements (Millions of NIS) Data as of December 31 2014 December 31 2013 December 31 2012 Cash and securities 445 309 182 Investment property and real estate under 3,270 3,182 3,001 construction Total assets 3,862 3,612 3,281 Current liabilities 601 556 426 Other long
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 December 31 2014 – 165 million NIS Occupancy rate in property as of December 31 2014 – 99% 18
Slide 19: Hashlosha Street Tel Aviv
Hashlosha Street Tel Aviv 25,000 m² Project under value as of December 31 2014: 399 million NIS construction Main tenant - the Government of Israel - Ministry of Education Occupancy rate in property as of December 31 Planned project 2014 – 95% Under construction :21,000 m² on the existing structure
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 December 31 2014 (at 50%) — $38 million Canadian Occupancy rate in property as of December 31 2014 — 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 December 31 2014; €85 million Occupancy rate in property: 99% 22
Slide 23: Warsaw, Poland
Warsaw, Poland Adgar Park West ¢ Value of property as of December 31 2014 — €73.3 million (including land of €7.7 million) f° Building area: 43,000 m? * Cost to complete renovations and fit outs— €10 million ¢ Expected annual rent , fully occupied — €6 million Under signed leases— 78% 23
Slide 24: Antwerp, Belgium
Location: Plantin en Meretuslei Building area: 9,000 m7? Value of property as of December 31 2014: €20 million Occupancy rate in property as of September 31 01 4 — 100% NN Location: Italielei 120-124 (theater building) Building area: 16,000 m? Value of property as of December 31 2014: €22 million Oc
Slide 25: Projects Currently Underway – Israel
Projects Currently Underway – Israel 25
Slide 26: 42 Fraser
Adgar/YH 161 Liberty Adgar/YH 42 Fraser 7-15 Fraser/ 30 Fraser Adgar 159/173 Dufferin Adgar /YH 2 Fraser Canada Bread Site 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 December Completion Cost, NOI As of December 31 2014 Fully Finished Completion Fully Occupied Country Project Name 31 2014 (Millions of NIS) (Millions of NIS) Date (In Millions of NIS) Added floors
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 30 Fraser 7-15 & Poland Building D Poland Building A Canada The Company is The Company is The Company is working to receive a working to receive a acting to increased building permit for building permit for revenue from the the construction of the con
Slide 31: Planned Projects
Planned Projects 350 Burnhamthorpe 120 Bloor - Canada Canada - Liberty Canada Adjacent Land The Company is The Company is The Company is working to receive working to receive working to receive rights to construct construction rights for rights to construct a residential building or 15,000 m² of off
Slide 32: 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. 32
Slide 33: Thank You
Thank You 33
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