Amot Investments Ltd. · TASE:AMOT
Amot Investments — Non-Deal Roadshow (January 2020)
46 slides from Amot Investments's roadshow presentation, Jan 15, 2020
Slide 1: Introduction to Investor Presentation
AMOT INVESTMENTS INTRODUCTION TO INVESTOR PRESENTATION JANUARY 2020 COMPANY INFORMATION ALL AS OF 30 SEPTEMBER 2019 UNLESS STATED OTHERWISE B N
Slide 2: Content
CONTENT S START AMOT 6-8 INTRODUCTION E END 9-16 SUPPORTIVE MACRO ENVIRONMENT 17-27 HIGH QUALITY PORTFOLIO INVESTOR PRESENTATION 28-31 ROBUST DEVELOPMENT PIPELINE 32-37 SUPERIOR FINANCIAL RETURNS 38-39 CONCLUSION 40-43 APPENDIX ONE OF THE LARGEST PUBLICLY-TRADED, DEVELOPERS, ADDITIONAL MATERIALS OWN
Slide 3: Introduction
INVESTOR PRESENTATION IN TRO DUC TION ONE OF THE LARGEST PUBLICLY-TRADED, DEVELOPERS, OWNERS AND MANAGERS OF OFFICE, RETAIL AND LOGISTIC REAL ESTATE IN ISRAEL AMOT AMOT INVESTMENTS N INTRODUCTION B 3
Slide 4: Amot at a Glance
AMOT AT A GLANCE INVESTOR PRESENTATION ONE OF THE LARGEST PUBLICLY-TRADED OWNERS, MANAGERS AND DEVELOPERS OF REAL ESTATE IN ISRAEL $3.6(1) TEL AVIV 35 TOTAL REAL ESTATE VALUE (GAV) - USD 3.6 BILLION ONE OF THE 35 LARGEST COMPANIES ON THE ISRAELI STOCK ALL LOCATED IN ISRAEL. EXCHANGE AND INCLUDED IN
Slide 5: Key Investment Highlights
ATTRACTIVE ISRAELI ECONOMIC ENVIRONMENT COUPLED WITH INVESTOR PRESENTATION 1 STRONG LOCAL REAL ESTATE FUNDAMENTALS. PORTFOLIO FOCUSSED ON GREATER TEL AVIV REGION, ISRAEL’S 2 GROWTH ENGINE. HIGH QUALITY PORTFOLIO OF PROPERTIES, FOCUSSED ON OFFICE, 3 LOCATED IN PRIME LOCATIONS. STRONG DEMAND FROM A DI
Slide 6: Supportive Macro Environment
INVESTOR PRESENTATION EN VI RON MENT SUPPORTIVE MACRO ENVIRONMENT AND LOCAL REAL ESTATE FUNDAMENTALS SUPPORTIVE MACRO AMOT INVESTMENTS N ENVIRONMENT B 6
Slide 7: Exposure to the Impressive Economic Fundamentals
EXPOSURE TO THE IMPRESSIVE ECONOMIC INVESTOR PRESENTATION FUNDAMENTALS LEADING ISRAELI ECONOMY ROBUST POPULATION GROWTH (INDEXED-BASED AT 100%) SUPERIOR GDP GROWTH (% PER YEAR) (1) 140% 5% ISRAEL BOASTS STRONG 130% 30% 4% ECONOMIC FUNDAMENTALS 120% 3% AND HAS BECOME A GLOBAL TECHNOLOGY HUB 110% 9% 2
Slide 8: Exposure to the Global Technology Hub
EXPOSURE TO THE GLOBAL TECHNOLOGY HUB INVESTOR PRESENTATION LEADING ISRAELI GROWING VC INVESTMENTS IN ISRAEL ($,BN) ECONOMY 7.0 6.0 ISRAEL BOASTS STRONG 5.0 ECONOMIC FUNDAMENTALS 4.0 AND HAS BECOME A GLOBAL 3.0 TECHNOLOGY HUB 2.0 1.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 9: Tel Aviv - Key Highlights
T E L A V I V - K E Y H I G H L I G H T S INVESTOR PRESENTATION RESIDENT AGED 25-44 37.5% (VERSUS 26% ACROSS REST OF COUNTRY) HIGHER INCOMES 147% THAN ISRAELI OF NATIONAL AVERAGE AVERAGE HIGH-TECH c.2,000+ COMPANIES BASED IN TEL AVIV CAPITAL RAISING BY HIGH TEL AVIV AS A GLOBAL 1/3rd TECH COS. IN TE
Slide 10: Attractive Office Market Fundamentals
ATTRACTIVE TEL AVIV NET TAKE UP (‘000 SQM) (1) INVESTOR PRESENTATION 300 OFFICE MARKET 240 FUNDAMENTALS 180 120 STRONG TENANT DEMAND WITH LIMITED NEAR TERM. 60 NEW SUPPLY DRIVING 0 RENTS HIGHER h1 2014 h2 2014 h1 2015 h2 2015 h1 2016 h2 2016 h1 2017 h2 2017 h1 2018 h2 2018 h1 2019 net take up (sqm)
Slide 11: Future Public Transport Links
F U T U R E P U B L I C INVESTOR PRESENTATION T R A N S P O R T L I N K S TEL AVIV TO SIT AT THE CROSSROADS OF A FUTURE TRANSPORTATION NETWORK ISRAELI GOVERNMENT TO INVEST OVER 35 BILLION (USD) OVER THE NEXT SEVERAL YEARS, TO PROMOTE AND DEVELOP THE TRANSPORT INFRASTRUCTURE IN THE TEL AVIV METROPOLI
Slide 12: Exposure to the Attractive Israeli Real Estate Sector
EXPOSURE TO THE INVESTOR PRESENTATION ATTRACTIVE ISRAELI REAL ESTATE SECTOR CBD OFFICE CAP RATE SPREAD1 : TEL AVIV OFFERS THE SIGNIFICANT GAP BETWEEN HIGH CAP RATES HIGHEST CAP RATE SPREAD RELATIVE TO THAT OF MANY AND LOW INTEREST RATES SUPPORT AN INTERNATIONAL CITIES. ATTRACTIVE RETURN ON EQUITY FO
Slide 13: Amot in Comparison to Other European Propcos
AMOT IN COMPARISON INVESTOR PRESENTATION TO OTHER EUROPEAN EQUITY MARKET CAPITALIZATION ($BN) PROPCOS SIMILAR SIZE TO THAT OF OTHER HOUSEHOLD 7 6.4 NAMES IN THE EUROPEAN PROPERTY SECTOR 5.8 5.25 3.3 3.5 3.5 2.7 2.8 2.8 1.7 1.75 0 BEFIMMO SA AMOT WORKSPACE GROUP GREAT PORTLAND ESTATE ALSTRIA TLG IMMO
Slide 14: High Quality Portfolio
INVESTOR PRESENTATION PO RT FOLIO OFFICE AND INDUSTRIAL LED PORTFOLIO; RETAIL LARGELY COMPRISED OF CENTRES IN HIGH QUALITY LOCATIONS HIGH QUALITY AMOT INVESTMENTS N PORTFOLIO B 14
Slide 15: Amot's Leading Real Estate Portfolio
AMOT’S LEADING REAL ESTATE INVESTOR PRESENTATION PORTFOLIO OFFICE FOCUS PORTFOLIO; INCOME-PRODUCING PROPERTY VALUE IN SEGMENTATION OF OFFICES USD MILLION: INCOME-PRODUCING 56% 1,739 PROPERTY VALUE VALUE IN USD MILLION: 3,125 3,125 INCOME-PRODUCING PROPERTY TOTAL PROPERTY VALUE VALUE AS OF: 30/09/19
Slide 16: Focus on Greater Tel Aviv
FOCUS ON GREATER TEL AVIV AND AMOT’S PORTFOLIO IS FOCUSSED ON GREATER TEL AVIV AND ITS INVESTOR PRESENTATION IMMEDIATE SURROUNDINGS (“GUSH DAN”), THE BOOMING SURROUNDING METRO AREA EPICENTRE OF ISRAEL AMOT’S PORTFOLIO IS FOCUSSED ON GREATER TEL AVIV AND GREEN LINE ITS IMMEDIATE SURROUNDINGS (“GUSH D
Slide 17: Across the Tel Aviv Skyline
AMOT AMOT’S PORTFOLIO IS FOCUSSED ON GREATER INVESTOR PRESENTATION TEL AVIV AND ITS IMMEDIATE ACROSS THE TEL AVIV SKYLINE SURROUNDINGS (“GUSH DAN”), THE BOOMING EPICENTRE OF ISRAEL AMOT OWNS SEVERAL MARQUEE BUILDINGS THAT STAND OUT AMIDST THE TEL AVIV SKYLINE AMOT HAKIRIA DUBNOV AMOT EUROPE AMOT INS
Slide 18: Atrium Tower
ATRIUM OFFICES CASE INVESTOR PRESENTATION STUDY TOWER LOCATION TEL AVIV METROPOLIS MAIN USE OFFICES DEVELOPMENT AT ATTRACTIVE YIELD ON COST AREA 57,000 SQM FAIR VALUE 381M$ INCLUDING AMOT’S FLOOR AMOT'S SHARE 100% OCCUPANCY 99.5% NOI 26 INCLUDING AMOT’S FLOOR USD MILLION N AMOT INVESTMENTS YIELD ON
Slide 19: Toha Tower
TOHA 1 OFFICES CASE INVESTOR PRESENTATION STUDY TOWER LOCATION TEL AVIV METROPOLIS MAIN USE OFFICES DEVELOPMENT AT ATTRACTIVE YIELD ON COST AREA 57,000 SQM FAIR VALUE 358M$ 30.9.2019 AMOT'S SHARE 50% OCCUPANCY 96.5% NOI 28 FULL OCCUPANCY USD MILLION N AMOT INVESTMENTS YIELD ON COST >10% B HIGH QUALI
Slide 20: Amot Logistics S.L.A.
AMOT LOGISTICS INVESTOR PRESENTATION CASE STUDY S.L.A. LOCATION SHOHAM MAIN USE LOGISTICS AREA 50,000 SQM FAIR VALUE 129M$ 11.2019 AMOT'S SHARE 100% OCCUPANCY 100% NOI 6.3 2020 USD MILLION N AMOT INVESTMENTS B HIGH QUALITY 20 PORTFOLIO
Slide 21: Kiryat Ono Retail
KIRYAT RETAIL INVESTOR PRESENTATION CASE STUDY ONO LOCATION KIRYAT ONO (GUSH DAN) MAIN USE RETAIL/OFFICES AREA 43,000 SQM FAIR VALUE 297M$ AMOT'S SHARE 100% OCCUPANCY 100% NOI 2020 19 USD MILLION N AMOT INVESTMENTS B HIGH QUALITY 21 PORTFOLIO
Slide 22: Diverse Tenant Roster
AMOT’S PORTFOLIO IS FOCUSSED ON GREATER INVESTOR PRESENTATION INT’L MATURE TECHNOLOGY COMPANIES AND INT’L DIVERSIFIED ISRAELI LOCAL TEL AVIV AND ITS IMMEDIATE GROWTH TECH BUSINESSES SURROUNDINGS (“GUSH DAN”), THE BOOMING EPICENTRE OF ISRAEL EMBASSIES / CONSULATES N AMOT INVESTMENTS DIVERSE TENANT RO
Slide 23: High and Stable Occupancy Rates
INVESTOR PRESENTATION HIGH AND STABLE OCCUPANCY RATES ASSETS ARE NEAR FULL OCCUPANCY; LONG TRACK-RECORD OF SUCCESSFUL LEASING 95.8 95.4 96.3 96.5 97.5 97.7 95.0 94.2 97.0 97.0 97.4 97.2 97.3 OFFICE AND INDUSTRIAL LED PORTFOLIO; RETAIL LARGELY COMPRISED OF CENTRES IN HIGH QUALITY LOCATIONS N 2007 200
Slide 24: Robust Development Pipeline
INVESTOR PRESENTATION DE VE LOP MENT ROBUST DEVELOPMENT PIPELINE TO FUEL GROWTH ROBUST AMOT INVESTMENTS N DEVELOPMENT PIPELINE B 24
Slide 25: Development Strategy / Policy
INVESTOR PRESENTATION INVESTMENT IN PROJECTS UNDER LOW CONSTRUCTION (LAND + BUILDING) UP TO 15% OF THE TOTAL PROPERTY VALUE. DEVELOPMENT RISK MAINTAINING THE COMPANY’S EXISTING LEVERAGE RATES. INVESTMENT IN PROJECTS UNDER CONSTRUCTION (LAND + BUILDING) UP TO 15% OF THE TOTAL PROPERTY VALUE. N AMOT A
Slide 26: Projects Under Construction
INVESTOR PRESENTATION CONCENTRATION OF DATA ON PROJECTS UNDER CONSTRUCTION AMOT HOLON AMOT MODI’IN AMOT DEVELOPMENTS ATTRACTIVE YIELD ON COST FOR PRIME ASSETS PROJECTS UNDER CONSTRUCTION THE COMPANY HAS 4 PROJECTS UNDER CONSTRUCTION, THE COMPANY’S SHARE IN WHICH IS APP. 130 THOUSAND SQUARE METERS AB
Slide 27: Holon Tower
PROJECTS UNDER INVESTOR PRESENTATION CONSTRUCTION MAIN USE OFFICES HOLON GLA 56,000 SQM TOWER AMOT'S SHARE 78% EXPECTED 2021 COMPLETION ESTIMATED CONSTRUCTION COST: AMOT’S SHARE USD 147 M PREEMINENT DEVELOPER WITH EXPECTED YOC 8% ROBUST PIPELINE N DE VELOP B MENT AMOT DEVELOPMENTS 27
Slide 28: Modi'in Logistics
PROJECTS UNDER INVESTOR PRESENTATION CONSTRUCTION MAIN USE LOGISTICS MODI’IN GLA 34,000 SQM LOGISTICS AMOT'S SHARE 75% EXPECTED 2020 COMPLETION ESTIMATED CONSTRUCTION COST: AMOT’S SHARE USD 71 M EXPECTED YOC 8% PREEMINENT DEVELOPER WITH ROBUST PIPELINE N DE VELOP B MENT AMOT DEVELOPMENTS 28
Slide 29: Modi'in Logistics
INVESTOR PRESENTATION PROJECTS UNDER CONSTRUCTION N B MODI’IN LOGISTICS PREEMINENT DEVELOPER WITH ROBUST PIPELINE AMOT DEVELOPMENTS 29
Slide 30: Mitham Ha'Lehi
PROJECTS UNDER INVESTOR PRESENTATION CONSTRUCTION MAIN USE OFFICES MITHAM GLA 75,000 SQM HA’LEHI AMOT'S SHARE 50% EXPECTED 2024 COMPLETION ESTIMATED CONSTRUCTION COST: AMOT’S SHARE USD 157 M EXPECTED YOC 9% PREEMINENT DEVELOPER WITH ROBUST PIPELINE N DE VELOP B MENT AMOT DEVELOPMENTS 30
Slide 31: Projects in the Planning and Initiation Stages
INVESTOR PRESENTATION CONCENTRATION OF DATA ON PROJECTS IN THE PLANNING AND INITIATION STAGES TOHA2 AMOT DEVELOPMENTS SIGNIFICANT PIPELINE IN PLANNING PROJECTS IN THE PLANNING AND INITIATION STAGES PLATINUM PHASE 2 AMOT SHAOOL N AMOT INVESTMENTS DE ROBUST B VELOP DEVELOPMENT 31 MENT PIPELINE
Slide 32: Toha 2 Projects Under Planning
PROJECTS UNDER INVESTOR PRESENTATION PLANNING MAIN USE OFFICES TOHA 2 ADDITIONAL RIGHTS: ACCO R D I N G TO T ”A\ 5 0 0 0, T H E LO CA L TOWER CO M M I T T E E A PPR OVE D FO R D E P O S I T UNDER CONDITIONS, BUILDING RIGHTS FOR THE CONSTRUCTION OF ANOTHER OFFICE TOHA 2 – PHASE TWO OF TOWER THE EXIST
Slide 33: Superior Financial Returns
INVESTOR PRESENTATION FI NAN CIAL STRONG BALANCE SHEET WITH CONSERVATIVE LEVERAGE POSITION SUPERIOR AMOT INVESTMENTS N FINANCIAL RETURNS B 33
Slide 34: NOI Pro Forma After New Developments
NOI PRO FORMA AFTER INVESTOR PRESENTATION NEW DEVELOPMENTS 265 205 194 181 163 264 146 141 194 205 181 163 141 146 2014 2015 2016 2017 2018 2019E POST LEASE-UP 88% 45% STRONG BALANCE SHEET WITH CONSERVATIVE LEVERAGE POSITION FORECASTED NOI IS CALCULATED AS RUN-RATE NOI TODAY PLUS THE AMOT INVESTMENT
Slide 35: Financial Strength
FINANCIAL STRENGTH INVESTOR PRESENTATION THE CHANGE IN THE WEIGHTED CAP RATE RELATIVE TO THE CHANGE IN THE COMPANY’S WEIGHTED INTEREST RATE 9.00% 8.29% 8.05% 7.80% 7.90% 7.73% 7.71% 7.52% 7.41% 7.33% 7.18% } 7.03% 7.01% 6.75% 5.3% 5.02% 4.88% 4.89% 4.63% 4.27% 4.50% 3.86% 6.91% 3.59% 3.17% 2.81% 2.6
Slide 36: Healthy FFO and Dividend Growth
HEALTHY FFO INVESTOR PRESENTATION 0.41 0.41 0.36 0.39 AND DIVIDEND 0.33 0.28 0.3 0.31 0.31 0.31 0.26 0.27 PER SHARE 0.24 0.24 0.24 0.18 0.18 0.19 0.19 0.22 GROWTH 0.16 0.13 0.13 0.14 ROBUST FFO PER SHARE GROWTH OVER TIME HAS SUPPORTED A RAPIDLY INCREASING DIVIDEND (USD) 2008 2009 2010 2011 2012 2013
Slide 37: Top-Rated Financial Position
EFFECTIVE LEVERAGE RATIO OF 42%. TOP-RATED FINANCIAL INVESTOR PRESENTATION POSITION THE COMPANY'S BONDS ARE RATED ILAA/STABLE BY S&P (MAALOT) AND ILAa2/STABLE BY MOODY’S (MIDROOG) (ISRAELI SCALE). STRONG BALANCE SHEET WITH CONSERVATIVE ALL OF THE COMPANY'S ASSETS ARE UNPLEDGED EXCEPT FOR LEVERAGE PO
Slide 38: Track Record of Delivering a Reliable Forecast
ACTUAL FFO TRACK RECORD OF INVESTOR PRESENTATION FORECAST FFO DELIVERING A RELIABLE 136 147 FORECAST FOR 123 135- 138 SHAREHOLDERS 120- 123 AMOT HAS A HIGHLY PREDICTABLE 104 INCOME STREAM AND OFFERS CLEAR 102- MARKET GUIDANCE (USD MILLION) 92 105 87- 90 AMOT HAS A HIGHLY PREDICTABLE INCOME STREAM AN
Slide 39: Conclusion
INVESTOR PRESENTATION CON CLU SION ONE OF THE LARGEST PUBLICLY-TRADED, DEVELOPERS, OWNERS AND MANAGERS OF OFFICE, RETAIL AND LOGISTIC REAL ESTATE IN ISRAEL CONCLUSION AMOT INVESTMENTS N B 39
Slide 40: Conclusion
1 ATTRACTIVE ISRAELI ECONOMIC ENVIRONMENT A LEADER IN THE INVESTOR PRESENTATION COUPLED WITH STRONG REAL ESTATE FUNDAMENTALS. BUOYANT ISRAELI 2 PORTFOLIO FOCUSSED ON GREATER TEL AVIV REGION, REAL ESTATE MARKET ISRAEL’S GROWTH ENGINE. PORTFOLIO ONLY IN ISRAEL. IMPRESSIVE PORTFOLIO OF PROPERTIES FOCUS
Slide 41: Appendix
INVESTOR PRESENTATION APPENDIX ONE OF THE LARGEST PUBLICLY-TRADED, DEVELOPERS, OWNERS AND MANAGERS OF OFFICE, RETAIL AND LOGISTIC REAL ESTATE IN ISRAEL AMOT INVESTMENTS N B ADDITIONAL MATERIALS 41
Slide 42: Lease Term Comparison: UK, US, Israel
INVESTOR PRESENTATION ITEM UK US ISRAEL LEASE TERM • 10-15 years • 5-10 years • c. 5 years + tenant option • Larger spaces leased for c.10 years RENT QUOTE • Per square foot per annum • Per square foot per annum • Per square metre per month RENT • Rent review, generally every five years (rent • Buil
Slide 43: ESG Policy of Amot
ENVIRONMENTAL ESG POLICY OF AMOT INVESTOR PRESENTATION • AMOT INVESTS CONSIDERABLE SUMS TO ENSURE ADHERENCE WITH ENVIRONMENTAL VALUES IN THE OPERATION OF ITS EXISTING ASSETS AND THE CONSTRUCTION OF ITS NEW ASSETS. • THE COMPANY'S MOST RECENT OFFICE DEVELOPMENTS HAVE ALL BEEN BUILT APPENDIX WITH STRI
Slide 44: Disclaimer
INVESTOR PRESENTATION DISCLAIMER The information included in this presentation is a summary only and does not exhaust all of the information on the Company and its business, nor is it a substitute for inspection of the Periodic Report for 2018, the quarterly reports for September 30, 2019, and the p
Slide 45: Contact Details
INVESTOR PRESENTATION CONTACT DETAILS AMOT INVESTMENTS ONE OF THE LARGEST PUBLICLY-TRADED, DEVELOPERS, OWNERS AND MANAGERS OF OFFICE, RETAIL AND LOGISTIC REAL ESTATE IN ISRAEL P +972 3 5760505 F +972 3 5760506 INVESTORRELATION@AMOT.CO.IL WWW.AMOT.CO.IL AMOT ATRIUM TOWER 2 JABOTINSKY STREET, RAMAT GA
Slide 46: Thank You
INTRODUCTION TO THANK YOU AMOT INVESTMENTS ONE OF THE LARGEST PUBLICLY-TRADED, DEVELOPERS, OWNERS AND MANAGERS OF OFFICE, RETAIL AND INVESTOR PRESENTATION LOGISTIC REAL ESTATE IN ISRAEL JANUARY 2020 B