Gav-yam Lands Corp. Ltd · TASE:GVYM
Gav-yam Lands — Q1 2021 Earnings Presentation
48 slides from Gav-yam Lands's earnings presentation, Apr 28, 2021
Slide 1: Board of Directors Presentation Q1 2021
Board of Directors Presentation Q1 2021 April 28, 2021 1
Slide 2: General
General A public company traded on the Tel Aviv Stock Exchange and included in the TA 90 Index. Income-producing areas 1,034,000 sqm Value of investment property NIS 8.5 billion Debentures rating 100% of the Company’s properties are Value of investment Income-producing unpledged. property AA areas 8
Slide 3: Financial strength - Q1 2021 Summary
Financial strength - Q1 2021Summary Liquid resources - NIS 1.8 billion Leverage - 53% 100% of the Company’s properties are unpledged. Debt – rating AA by Maalot Aa2 by Midroog (Favorable average duration and debt structure) Cashflow from operating activities - NIS 82 million Average capitalization r
Slide 4: Mix of income-producing properties and various strong customers
Mix of income-producing properties and various strong customers 440 customers Commerce 6% Hi-tech and offices - 75% of the Company’s rental income Logistics and ▪ Leading international and Israeli companies (Top Tier) industry 19% ▪ Broad geographical and sectorial dispersion Hi-tech and offices ▪ H
Slide 5: Execution of lease agreements - Q1 2021
Execution of lease agreements - Q1 2021 Number of Aboveground Annual revenue Average real contracts area (ILS millions, for aboveground increase rate areas) (sqm) Existing assets 20 13,400 9.6* 3.6% Distribution of real increase rate in agreements that were executed for current assets: Real increase
Slide 6: Transactions in Q1 2021
Transactions in Q1 2021 The project - Construction of a Rav Bariach factory in Ashkelon Built area - approximately 41,000 sqm to be build on approximately 55 dunam, in the Ashkelon Industrial Zone. Period of the agreement - approximately 25 years. Simulation Expected completion - Q1 2023 Yield - 6%
Slide 7: Gav-Yam assets
Gav-Yam assets 1,034,000 sqm (including approximately 277,000 sqm of parking lots and service areas) 19 Cities 343,000 sqm Under construction, planning, and licensing The Company’s consolidated share out of approximately 407,000 sqm Expanded solo 278,600 sqm 22 Hi-tech parks and 490,000 sqm centers,
Slide 8: Leading customers: 440 customers
Leading customers: 440 customers 25 companies traded on leading stock exchanges worlwide 20 companies traded on the Tel Aviv Stock Exchange Order backlog: NIS 2.3 billion Including projects under construction: NIS 2.75 billion (as of March 31, 2021) There is no material customer that generates over
Slide 9: Distribution of the assets' value by use
Distribution of the assets’ value by to use: Weighted CAP rate- 7.3% Logistics and industry(1) Hi-tech and 250,500 sqm offices(1) NIS 1,518 million 709,900 sqm 20% NIS 5,481 million 6.9% Value of income- Average CAP rate producing assets 7.3% 7,460 Average CAP rate Commerce 6% 74% NIS millions 53,90
Slide 10: Strategic partnerships with the leading academic institutions
Strategic partnerships with the leading academic institutions: Simulation Simulation Simulation 10
Slide 11: Financial results – Q1 2021
Financial results – Q1 2021 Q1- 2021 60 197 82 120 127 129 134 NIS million NIS million NIS million NIS million NIS million NIS million NIS million FFO Net profit Cash Flow Same Rental Attributed to for the from operating EBITDA Properties NOI shareholders shareholders activities (89% of revenues) NO
Slide 12: Summary of financial data (in NIS millions)
Summary of financial data (in NIS millions) Q1 2021 Q1 2021 Rate of change in % % Rental income 134 134 - (3.3%) 3%) NOI NO 129 129 - Same Properties NOI 127 128 (0.8) EBITDA 120 121 (0.8) Income from increase in fair 198 25 value Cash flow from operating 82 96 (14.6) activities Net profit attributa
Slide 13: Summary of financial data (in NIS millions)
Summary of financial data (in NIS millions) March 31, December 31, Rate of 2021 2020 increase in % (3.3%) Value of investment property 8,487 8,219 3.3 Net financial debt 3,982 3,624 9.9 Leveraging 53% 50.1% 2.9 Equity attributed to the 2,712 2,774 (2.2) shareholders Market value (1) 5,694 5,671 0.4
Slide 14: Summary of balance sheet (in ILS millions)
Summary of balance sheet (in ILS millions) March 31, December March 31, December 2021 31, 2020 2021 31, 2020 Liquid resources 1,795 2,539 Gross financial debt 5,777 6,163 Fair value of investment property, 8,487 8,219 out of which: Other liabilities 458 502 Property under 602 549 construction Deferr
Slide 15: Growth in income-producing properties and in rental income
Growth in income-producing properties and in rental income 1,0 995,000 034,000 919,000 892,,000 877,000 859,000 808,,00 758,0 736,,00 510 534 0 ,0 00 000 445 459 00 421 0 392 338 346 361 134 134 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-2020 Q1-2021 Rental income Income-producing *In this peri
Slide 16: Growth in NOI in NIS millions
Growth in NOI in NIS millions 516 490 430 441 406 377 349 323 333 129 129 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-2020 Q1-2021 16 16
Slide 17: Growth in EBITDA in NIS millions
Growth in EBITDA in NIS millions 480 458 401 407 375 353 328 298 308 121 120 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-2020 Q1-2021 17 17
Slide 18: Growth in rental income and leverage rates
Growth in rental income and leverage rates Leverage rate (%) 49 53 51 49 50 45 47 47 50 53 534 510 445 459 421 392 Rental income 346 361 (NIS millions) 338 134 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-2021 2021E 18 18
Slide 19: Growth in value of investment property in NIS millions
Growth in value of investment property in NIS millions Distribution of investment property value 8,487 as of March 31, 2021 8,219 7,770 100% (NIS millions) 100% 6,752 100% Properties 6,379 under 5,858 100% construction Lands 5,497 425 5,156 602 4,930 85% 5% 4,457 86% 7% 83% 83% 82% 84% Income-produc
Slide 20: Debt repayment schedule in NIS millions
Debt repayment schedule in NIS millions Debt rating Average duration of Effective annual interest Gross financial debt AA Maalot, Aa2 Midroog debt 2.6% (average) NIS 5,777 million 4.6 years 1.2 2.8 2.8 3.1 2.8 2.8 2.5 22 .0.-02.6 Fixed Index 1,395 linked, Shekel, * 2,686 3,091 46% 54% 843 750 750 60
Slide 21: Expanded solo financial data (in NIS millions)
Expanded solo financial data* (in NIS millions) Q1-2021 Q1-2020 Change in % Rental income 111 111 - NOI 107 107 - Same Properties NOI 105 106 (0.9) EBITDA 100 101 (1) Income from an increase in fair value of 195 25 investment property Financing expenses, net 38 41 (7.3) Tax expenses 59 23 156.5 Net
Slide 22: Expanded solo financial data (in NIS millions)
Expanded solo financial data (in NIS millions) March 31, December March 21, December 2021 31, 2020 2021 31, 2020 Liquid resources 1,658 1,280 Gross financial debt 5,261 4,254 Fair value of investment property, out of which: 7,135 6,881 Other liabilities 449 400 Property under construction 480 440 La
Slide 23: Growth in FFO to the shareholders in NIS millions
Growth in FFO to the shareholders in NIS millions 231 240 187 199 159 170 135 132 132 (6.3%) 64 60 2012 2013 2014 2015 2016 2017 2018 2019 2020 1-2020 1-2021 23 24
Slide 24: Projects under development
Projects under development Matam East #1+#2+#3 The Hebrew University #1 + #2 3 1 12 projects 2 1 2 407,100 sqm (Company’s share 343,000 sqm) Simulation Simulation Herzliya North - Gav-Yam O2 Gav-Yam Park Raanana ToHa2 - Partial parking lot additional building #1 1 Simulation Simulation 24
Slide 25: Projects under development
Projects under development Gav-Yam Park Haifa Bay #4 Gav-Yam Park Haifa Bay #3 After completion and occupation of the projects 3 under development (Q4 2024): Total areas for rent in the Company Approximately 1,377,000 Simulation Simulation sqm (an additional 343,000 Gav-Yam Park Gderot #1 Gav-Yam Pa
Slide 26: Construction of photovoltaic installations on roofs of the Company's buildings
Construction of photovoltaic installations on roofs of the Company’s buildings Planned: Construction of installations on approximately 70 roofs Gav-Yam - Caesarea Investment: NIS 64 million. Gross revenues: NIS 11 million. Net revenues: Approximately NIS 9 million. Power: Approximately 16 mega watts
Slide 27: Projects under development
Projects under development Cost balance Revenues Company’s Construction Aboveground Parking Total as of March from rent Expecte share costs No. The project 31, 2021 (1) d yield (5) Company’s share, expected, in NIS Area (sqm) millions 1 Matam-East Towers 1# 28,000 18,000 46,000 46,000 276 164 28 10.
Slide 28: Projects under development - expanded solo
Projects under development - expanded solo * Cost balance as of Revenues from Company’s share Construction costs Expected No. The project March 31, 2021 rent (1) return Area (sqm) Company’s share, expected, in NIS millions 1 Matam-East Towers 1# 23,000 138 82 14 10.1% 2 Matam-East Towers #2 23,500 1
Slide 29: Matam East Towers #1 + #2
Matam East Towers #1 + #2 Matam East #1: International hi-tech company Approximately 46,000 sqm, out 28,000 sqm of which: Approximately 28,000 sqm aboveground 6,000 sqm 1 Date of completion: Q3 2022 Total costs: NIS 276 million Revenues: NIS 28 million 2 Yield: 10.1% Matam East #2: Approximately 47,
Slide 30: Matam East Towers #1 + #2
Matam East Towers #1 + #2 2 1 Photograph: April 2021 30 31
Slide 31: Matam East #3
Matam East #3 Built-up area: Approximately 35,000 sqm Date of completion: Q4 2024 3 Total cost: NIS 173 million Expected revenues: NIS 20 million Yield: 11.5% 31
Slide 32: Gav-Yam Park Raanana #1
Gav-Yam Park Raanana #1 1 1 Photograph: April 2021 32 32
Slide 33: Gav-Yam Park Raanana #1
Gav-Yam Park Raanana #1 Gav-Yam Park Raanana #1: Approximately 58,000 sqm, out of which: Approximately 25,400 sqm aboveground 1 Date of completion: Q3 2023 Total cost: NIS 222 million Revenues: NIS 16 million Yield: 7.7% Combination transaction, Company’s share 69.5% * Not including underground park
Slide 34: Gav-Yam Park Ha'Ivrit Phase A
Gav-Yam Park Ha'Ivrit Phase A Built area: Approximately 85,000 sqm, out 1 of which: Approximately 55,000 sqm aboveground Area: 16,500 sqm aboveground Annual revenues (Gav-Yam’s share): NIS Date of completion: Q2 2024 13 million Total cost: NIS 580 million Anticipated revenues: NIS 47 million 2 Yield
Slide 35: Gav-Yam Park Ha'Ivrit Phase A
Gav-Yam Park Ha'Ivrit Phase A 1 2 Photograph: April 2021 35
Slide 36: Herzliya North - Gav-Yam O2 expansion + parking
Herzliya North - Gav-Yam O2 expansion + parking Built area: Approximately 45,000 sqm, out of which: Approximately 23,000 sqm aboveground Date of completion: Q4 2024 Total cost: NIS 367 million Revenues: NIS 26 million Yield: 7.1% Simulation 36
Slide 37: ToHa 2 partial parking lot
ToHa 2 partial parking lot Hashalom Road Planned subway station ToHa 2 partial parking lot Totseret Haaretz Street 37 36 Photograph: January 2021
Slide 38: Gav-Yam Park Gderot #1
Gav-Yam Park Gderot #1 Built-up area: Approximately 7,500 sqm Date of completion: Q4 2021 Total cost: NIS 55 million Revenues: NIS 4 million Yield: 7.3% 1 Simulation 38
Slide 39: Gav-Yam Park Gderot
Gav-Yam Park Gderot 2 1 2 Simulation 39
Slide 40: Gav-Yam Park Haifa Bay #3
Gav-Yam Park Haifa Bay #3 Built-up area: Approximately 6,100 sqm Date of completion: Q2 2022 Total cost: NIS 33 million Anticipated revenues: NIS 3 million Yield: 9% Simulation 40
Slide 41: Gav-Yam Park Haifa Bay #4
Gav-Yam Park Haifa Bay #4 Built-up area: Approximately 20,000 sqm Date of completion: Q4 2022 Total cost: NIS 125 million Anticipated revenues: NIS 10 million Yield: 8% Simulation 41 40
Slide 42: Gav-Yam Park Ashkelon
Gav-Yam Park Ashkelon Built area - approximately 41,000 sqm to be built on approximately 55 dunam, in the Ashkelon Industrial Zone. Date of completion - Q1 2023 Total cost - NIS 190 million Anticipated revenues - NIS 12 million Yield - 6% **Upon completing the construction of the factory, Gav-Yam’s
Slide 43: City Building Plans in process: ToHa 2
City Building Plans in process: ToHa 2* ToHa2 The Company is acting to further promote the project, including ToHa2 constructing a partial underground parking in the area beneath the planned ToHa2 tower, in an area of approximately 16,000 sqm underground, and further planning of the ToHa2 tower. The
Slide 44: Building rights: Available for construction
254,000 sqm 18,000 sqm 8,000 sqm Building rights: 19,000 sqm 490,000 sqm 17,000 sqm Available for 46,000 sqm construction 13,000 sqm (Company’s consolidated share) 9,000 sqm Main areas, not including projects under construction Value: NIS 425 million 105,000 sqm 44 43
Slide 45: Planned: Gav-Yam Holon Park #3
Planned: Gav-Yam Holon Park #3 Built area: Approximately 45.000 sqm Out of which: Approximately 23,000 sqm aboveground 3 Planned subway station Simulation 45
Slide 46: Planned: Gav-Yam Rehovot Park #5
Planned: Gav-Yam Rehovot Park #5 Built area: Approximately 37,000 sqm, out of which: Approximately 22,000 sqm aboveground 7 Company’s share: 72% 9 8 4 5 6 Simulation 46
Slide 47: Planned: Gav-Yam Caesarea Business Center #1
Planned: Gav-Yam Caesarea Business Center #1 Built area: Approximately 11,500 sqm Aboveground 1 Partnership with the Caesarea Development Corporation Company’s share: 50% Simulation 47
Slide 48: Forward-looking information
Forward-looking information This presentation includes forecasts, evaluations, estimates, and other information referring to future events and matters, the extent to which such shall materialize is uncertain and is not solely under the Company’s control (forward-looking information). The main facts