Gav-yam Lands Corp. Ltd · TASE:GVYM
Gav-yam Lands — Investor Presentation (December 2022)
83 slides from Gav-yam Lands's investor presentation, Dec 31, 2022
Slide 1: Capital Market Presentation - Annual Summary
CAPITAL MARKET PRESENTATION - ANNUAL SUMMARY
Slide 2: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 Marketing Executed Agreements: 12 lease agreements (including LOI) for a total area of 121,000 m2 aboveground, generating revenues of ILS 112 million per year, executed for projects under construction under construction - marketing of 60% of all aboveground area in develop
Slide 3: Marketing of areas under development in 2022
Marketing of areas under development in 2022 Annual revenue (ILS millions), consolidated Gav-Yam Park Rehovot 5 11,000-17,000 m2 Gav-Yam Park Raanana ILS 9 Gav-Yam Hebrew Campus Gav-Yam Park Holon ILS 9 8,000 m2 million Total 112 million ILS ILS ToHa 2* Gav-Yam Complex - ILS 52 26,000 m2 million Rav
Slide 4: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 Development 16 projects under construction (14 in construction, 2 in planning and licensing), with a total area of 590,000 m2, total investment of ILS 5.7 billion, which generate additional annual income representing ILS 492 million. Expected return from these projects is
Slide 5: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 Completion and occupancy of three projects, with a total area of 60,000 m2, which have been fully marketed and will generate an annual income totaling ILS 37 million. ● Matam East Towers #1 - area of 46,000 m2, annual revenue of ILS 30 million; completed and fully occupied
Slide 6: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 Projects ending in 2023: ● Rav Bariach #1 - area of 29,000 m2, annual revenue of ILS 12 million; completed and fully occupied by Rav Bariach after the date of the report. ● Matam East #2 - 48,000 m2 ILS 33 million per year. ● Gav-Yam Raanana - 51,000 m2 ILS 24 million per
Slide 7: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 NOI NOI this year totaled ILS 555 million, an increase of 6.3% compared to last year. In 2023, this fgure is expected to total ILS 630-645 million, an increase of 15% ( ILS 80 million). 7
Slide 8: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 FFO ● FFO attributed to shareholders this year totaled ILS 313 million, an increase of ILS 60 million, or 24%, compared to last year. In Q4 this fgure totaled ILS 83 million, an increase of 38% compared to the corresponding period last year. ● FFO attributed to shareholder
Slide 9: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 Debt fnancing Debt fnancing in 2022 totaled ILS 2.5 billion, index-linked, at a weighted average interest rate of 1.2% duration 6 years. Gross fnancial debt ILS 7.48 billion, 33% of which is fxed ILS debt. Acquisition Hahoshlim - a land reserve on Hahoshlim Street, Herzliy
Slide 10: Main activity Jan-Dec 2022
Main activity Jan-Dec 2022 Urban building plans (UBS) under planning and licensing procedures UBS Current situation Updated condition Status In planning process. Approved 500,000 m2 business for deposit to district under Holon 60 m2 constructed 60,000 m2 industry and retail conditions 2 of 3 plans t
Slide 11: Home for the world's largest companies
HOME FOR THE WORLD’S LARGEST COMPANIES 11
Slide 12: The Company's Customers
GAV®YAM THE COMPANY'S CUSTOMERS 2 ul amazon € Google GaMicrosot| PHILIPS 0<i\ EMC (intel, wix 3) AMWIDIA RAFAELGED Medtronic @ Eee iT mobileye G|Apeuer MOTOROLA Zert@ varons G Lightricks trad Puwésoo NOVA *Ieidos reestiver Gofmmonsfolmen siemens [RIE ¥ @) ss, ‘23 SOURCE Regus wework ME 3. Sow 5 eNO)
Slide 13: About Gav-Yam (as of Dec 2022)
About Gav-Yam (as of 31 Dec 2022) 400 ILS 9.8 billion income-generating 53.3% ILS 4.0 billion customers asset value Leverage equity for shareholders 4.4 years avg. duration lease 11.6 years The bonds are rated il AA/il Aa 2 ILS 1.6 billion agreements without avg. duration lease agreements for liquid
Slide 14: About Gav-Yam (Jan-Dec 2022)
About Gav-Yam (Jan-Dec 2022) ILS 649 million revenue from leased ILS 555 million ILS 930million ILS 313 million properties and NOI net proft for shareholders FFO for shareholders management fees 10.5% real increase in ILS 462 million cashfow from rental fees current activity 14
Slide 15: Income-generating property value (ILS 9,837 million)
Income-generating property value (ILS 9,837 million) 6.3% weighted rate of return 1,090 m2* 2,140 million 22% ILS weighted average ILS 7,201 million 73% 5.8% rate of return Wighted average cape Logistics and 6.3% rate 265,000 m2 industry high-tech parks 772,000 m2 and ofces 496 million 5% ILS weight
Slide 16: 19 cities with high-tech, logistics and industry parks
19cities HAIFA TIRAT HACARMEL AFULA 22 CAESAREA HERZLIYA ROSH HAAYIN TEL AVIV high-tech, HOLON logistics and BEER YAAKOV LOD NESS ZIONA industry parks MODI'IN REHOVOT GEDEROT JERUSALEM 98% YAVNE ASHKELON occupancy rate BEER SHEVA 16
Slide 17: Academy
ACADEMY GAV-YAM SPECIALIZES IN STRATEGIC PARTNERSHIPS WITH THE LARGEST ACADEMIC INSTITUTIONS IN ISRAEL AND LEADS THE TREND OF ACADEMIC PARKS 17
Slide 18: Academy
ACADEMY 18
Slide 19: Academy
GAV®YAM « ACADEMY = AVA TECHNION EVs] Israel Institute of Technology GAV®YAM 9 1 1k) 1a rg WEIZMANN INSTITUTE OF SCIENCE University of Haifa
Slide 20: Executed lease agreements
.3 Executed lease agreements Jan-Dec 2022 - average real increase of 10.5% 19% contract 8.3% Real increase 128 No. of contracts 111,000 m2 36% aboveground area 20.2% renewals Real increase ILS83 million replaced annual revenue (for aboveground areas) tenants 10.5% 45% Exercise of 3.7% Real increase
Slide 21: Acquisition Transaction Hahoshlim, Herzliya
Acquisition Transaction Hahoshlim, Herzliya Transaction Purchase of land for income-generating development project of 35,000 m2 Consideration ILS 160 million Plus payment for levies, betterment and Israel Land Authority * The images are for illustration purposes only 21
Slide 22: Financial Data
FINANCI CIA AL DATA
Slide 23: Financial results for Jan-Dec 2022
Financial results for Jan-Dec 2022 (ILS million) 1,092 930 649 605 555 543 522 513 313 253 REVENUE NOI NOI SAME NET FFO FOR FROM LEASED PROPERTIES SHAREHOLDER SHAREHOLDERS PROPERTIES AND PROFIT MANAGEMENT FEES 1-12.21 1-12.22 23
Slide 24: Growth in NOI
Growth in NOI (in ILS million) 5% e r1 v 630-645 72% o 32 m i l l i o n ) (I LS 2 555 522 516 490 441 430 406 377 349 333 323 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 forecast 2023 24
Slide 25: Growth in FFO for shareholders
Growth in FFO for shareholders (ILS millions) 1 3% e r ov 132% 350-360 i l l i o n ) 178 m (ILS 253 313 240 231 199 187 170 159 135 132 132 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 forecast 2023 25
Slide 26: Shareholder equity growth
Shareholder equity growth (ILS millions) 17 1% o n ) 50 8 milli LS 2 , 3,611 3,972 (I 2,774 2,710 2,444 2,347 1,965 1,748 1,591 1,505 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 30.12.2022 26
Slide 27: Distribution of investment property value
Distribution of investment property value (ILS 12,549 million) 16% 2,038 Investment property under 79% construction 9,837 5% income- generating real 674 lands estate 27
Slide 28: Gross financial debt (ILS 7,478 million)
Gross fnancial debt (ILS 7,478 million) As of 31 Dec 2022 1.3% weighted efective interest, index-linked 4.0 weighted duration 33% 67% index linked fixed ILS 2,447 5,031 28
Slide 29: Debt principal repayment schedule
Debt principal repayment schedule (ILS millions) 2,353 1,147 1,068 976 827 690 418 2023 2024 2025 2026 2027 2028 2029-2035 29
Slide 30: Financial data (ILS millions)
Financial data (ILS millions) Consolidated 1-12/2022 1-12/2021 Change in % NOI 555 522 6.3 NOI same properties 543 513 5.8 Increase in fair value of investment 1,220 1,266 (3.6) Cashflows from current activity 462 646 (28.5) Net profit for shareholders* 930 1,092 (14.8) FF0 for shareholders* 313 253
Slide 31: Financial data (ILS millions)
Financial data (ILS millions) Consolidated 31/12/2022 31/12/2021 Liquid Means 1,616 1,132 Fair value of investment property of which: 12,549 10,346 Investment property under construction 2,038 1,467 Land 674 482 Income-generating real estate 9,837 8,397 Other properties 521 328 Total assets 14,686 1
Slide 32: Financial data (ILS millions)
Financial data (ILS millions) Consolidated 31/12/2022 31/12/2021 Financial debt, gross 7,478 5,483 Other liabilities 501 434 Reserve for deferred taxes 1,568 1,309 Equity attributed to shareholders 3,972 3,611 Non-controlling interests* 1,167 969 Total equity and liabilities 14,686 11,806 *Share att
Slide 33: Financial data (ILS millions)
Financial data (ILS millions) 31/12/2022 31/12/2021 Change in % Investment property 12,549 10,346 21.3 Financial debt, net 5,863 4,351 34.7 Leverage rate 53.3% 48.7% 9.4 Shareholder equity 3,972 3,611 9.9 33
Slide 34: Financial data (ILS millions)
Financial data (ILS millions) Standalone extended* 30/12/2022 31/12/2021 Liquid means 1,459 1,036 Fair value of investment property of which: 10,594 8,775 Investment property under construction 1,794 1,219 Land 530 331 Income-generating real estate 8,270 7,225 Other properties 485 293 Total assets 1
Slide 35: Financial data (ILS millions)
Financial data (ILS millions) Standalone extended* 30/12/2022 31/12/2021 Financial debt, gross 7,020 4,998 Other liabilities 262 415 Reserve for deferred taxes 1,284 1,080 Equity 3,972 3,611 Total capital and liabilities 12,538 10,104 *Standalone extended = share attributed to shareholders (Matam 50
Slide 36: Financial data (ILS millions)
Financial data (ILS millions) Standalone extended* 1-12/2022 1-12/2021 Change in % NOI 459 432 6.2 NOI same properties 447 423 5.9 Increase in fair value of investment 965 1,120 (11.2) Financing expenses, net 264 198 33.3 Tax expenses 214 308 (30.5) Net profit 930 1,092 (14.8) FFO 313 253 23.7 *Stan
Slide 37: Main Assets
MAIN ASSETS 37
Slide 38: Main asset: 423,000 m2 total area
Area 317,000 m2 In development 106,000 m2 (without data centre areas) Total area 423,000 m2 (without data centre areas) NOI in 2022 ILS 156 million Added NOI from projects under construction ILS 97 million (without data centre areas) Total NOI ILS 223 million (without data centre revenue) Figures ar
Slide 39: Main asset: 310,000 m2 total area
Area 250,000 m2 In development 60,000 m2 Total area 310,000 m2 NOI in 2022 ILS 147 million Added NOI from projects under construction ILS 42 million Total NOI ILS 189 million * The images are for illustration purposes only 39
Slide 40: ToHa #1 + #2
ToHa #1 + #2 ToHa 1 89,000 m2 ToHa 2 - under construction 205,000 m2 Total area 294,000 m2 NOI in 2022 ILS 94 million Added NOI from projects under construction ILS 280 million Total NOI ILS 374 million Figures are 100% (Gav-Yam’s share 50%) 40
Slide 41: Building #1 + #2
Building #1 + #2 In development 89,000 m2 (58,700 company’s share) Building #1 Building #2 Added NOI from projects under construction ILS 76 million (ILS 50 million company’s share) * The images are for illustration purposes only 41
Slide 42: Main asset: 76,400 m2 total area
Area 61,400 m2 In development 15,000 m2 aboveground Total area 76,400 m2 NOI in 2022 ILS 28 million Added NOI from projects under construction ILS 9 million Total NOI ILS 37 million Figures are 100% (Gav-Yam’s share 73.25%) In partnership with Municipality of Beer Sheva and Ben-Gurion University * T
Slide 43: Completed Projects
COMPLELLETE E ETTE T TED E ED D PROJ O OJE J JEECTS 43
Slide 44: Matam East Towers #1
Fully m arkete d to a hi-tec n inte h com rnatio pany nal Matam East Towers #1 Area 46,000 m2 Total cost ILS 278 million NOI ILS 30 million Return 10.8% 44
Slide 45: Park Gav-Yam Gderot #1
Fully m arkete d Park Gav-Yam Gderot #1 Area 7,500 m2 Total cost ILS 59 million NOI ILS 4 million Return 6.8% 45
Slide 46: Gav-Yam Park Haifa Bay #3
Fully m arkete d Gav-Yam Park Haifa Bay #3 Area 6,100 m2 Total cost ILS 33 million NOI ILS 3 million Return 9.0% 46
Slide 47: Rav Bariach #1
Fully m arkete ASHKELON d Rav Bariach #1 Area 41,000 m2 (29,000 m2 company’s share) Completion date Rav Bariach #1 Q1 2023 Total cost (company’s share) ILS 206 million NOI (company’s share) ILS 12 million Return 6.0% * The images are for illustration purposes only *ההדמיה להמחשה בלבד 47
Slide 48: Projects Under Construction
PROJECTS UNDER CONSTRUCTION 48
Slide 49: Projects under construction
About 60% of the total aboveground Projects under construction areas of the projects under construction were marketed by the company. Annual Rate of Construction Remaining Consolidated Above- ground Parking lot Total Holding rate Total costs (including land) costs as of 31 Dec 2022 representative le
Slide 50: Projects in planning and licensing stages
Projects in planning and licensing stages Construction Annual Rate of Consolidated Above- ground Parking lot Total Holding rate Total costs (including Remaining costs as of 31 Dec 2022 representative leasing revenue ILS marketed aboveground Completion date land) millions area Consolidated Area (m2 t
Slide 51: Projects under construction (standalone extended)
Projects under construction Standalone Above- Parking lot Total Construction Remaining costs (including costs as of 31 Annual representative leasing revenue ILS Rate of marketed Completion **extended ground land) Dec 2022 millions aboveground area date Area (m2 thousands) – 100% In consolidated stat
Slide 52: Projects in planning and licensing stages (in ILS million)
Projects in planning and licensing stages (in ILS million) separate, - Above- Parking lot Total Construction Remaining costs (including costs as of 31 Annual representative Rate of marketed Completion *extended ground land) Dec 2022 leasing revenue ILS millions aboveground area date Area (m2 thousan
Slide 53: Matam Towers East #1 + #2
s t # 2 st # 3 A M Ea M Ea M AT MATAM Towers East M ATA ted to a rke nies fully m ompa #1 + #2 rna tional c inte Area 90,200 m2 of which 58,700 m2 aboveground Completion date Q1 2023 Q3 2025 Total cost ILS 603 million NOI ILS 64 million Return 10.6% Figures are 100% (Gav Yam’s share 50.1%) * The ima
Slide 54: Construction progress
Construction progress MATAM East #1 MATAM East #2 January 2023 54
Slide 55: Raanana
RAANANA Area 72,600 m2 (52,400 m2 company’s share) of which 40,000 m2 aboveground (28,000 m2 company’s share) Completion date Q3 2023 Total cost (company’s share) ILS 347 million NOI (company’s share) ILS 24 million Return 7.0% * The images are for illustration purposes only 55
Slide 56: Raanana construction progress
RAANANA Construction progress 56 January 2023
Slide 57: Hebrew Campus 89,000 m2
Area 89,000 m2 (59,000 m2 company’s share) of which 57,000 m2 aboveground Building #1 Building #2 (38,000 m2 company’s share) Completion date 37% marketed Q2 2024 Total cost (company’s share) ILS 654 million NOI (company’s share) ILS 50 million Return 7.7% * The images are for illustration purposes
Slide 58: Construction progress
Construction progress Building #1 Building #2 58 January 2023
Slide 59: Gav-Yam O2
Area 60,000 m2 of which fully m 38,000 m2 intern arketed t ation aboveground al como an pany Completion date Q4 2025 Total cost ILS 660 million NOI ILS 42 million Return 6.4% * The images are for illustration purposes only 59
Slide 60: Construction progress
Construction progress 60 January 2023
Slide 61: ToHa 2
Area 205,000 m2 of which 160,000 m2 above-ground areas Completion date Q4 2026 Total cost ILS 3.1 million NOI ILS 280 million Return 9.0% Figures 100% (Gav-Yam’s share 50%) * The images are for illustration purposes only 61
Slide 62: Construction progress
Construction progress 62 January 2023
Slide 63: Holon
HOLON 88% Gov ma ernm rket ent ed to Area Com plex 44,000 m2 of which 22,000 m2 aboveground Completion date Q2 2024 Total cost ILS 332 million NOI ILS 20 million Return 6.0% * The images are for illustration purposes only 63
Slide 64: Holon construction progress
HOLON Construction progress 64 January 2023
Slide 65: Haifa Bay #4
HAIFA BAY 4# d arkete fully m Area approx. 20,000 m2 Completion date Q3 2023 Total cost ILS 135 million NOI ILS 10 million Return 7.4% * The images are for illustration purposes only 65
Slide 66: Ashkelon Rav Bariach #2
ASHKELON Rav Bariach#2 rketed ly ma Area ful approx. 55,000 m2 Completion date of Rav Bariach #2 Q3 2025 Cost ILS 390 million NOI ILS 23 million Return 6% Figures 100% (Gav-Yam’s share 70.0%) * The images are for illustration purposes only 66
Slide 67: Project: 15,000 m2 aboveground, Q4 2024
Area 15,000 m2 aboveground Completion date Q4 2024 Total cost ILS 103 million NOI ILS 9 million Return 8.7% Figures 100% (Gav-Yam’s share 73.25%) * The images are for illustration purposes only 67
Slide 68: abo compa o an in
ma rket ed t abo compa o an in veg ny 1 tern Area leas roun 5,00 ation e th d wi 0m al 39,000 m2 e en tire th op 2 (28,000 m2 company’s share) buil tion to ding of which 24,000 m2 aboveground (17,000 m2 company’s share) Completion date Q4 2024 Total cost (company’s share) ILS 181 million NOI (compan
Slide 69: Construction progress
Construction progress 69 January 2023
Slide 70: Data centre
Data centre Supply of 9.5 megawatts (14,000 m2) 1,750 racks Completion date Q3 2024 Total cost ILS 355 million NOI ILS 70 million IRR 9% * The images are for illustration purposes only *ההדמיה להמחשה בלבד 70
Slide 71: Construction progress
Construction progress *ההדמיה להמחשה בלבד 71 January 2023
Slide 72: Construction of rooftop PV installations on company buildings
Construction of rooftop PV installations on company buildings Project 40 PV installations Power supply 7 megawatts Investment ILS 31 million NOI ILS 6 million 72 January 2023
Slide 73: Urban Building Plans
URBAN BUILDING PLANS 73
Slide 74: Holon urban building plan
Current status 60,000 m2 constructed Planned status 500,000 m2 business 60,000 m2 industry and retail 850 residential units 74
Slide 75: Holon urban building plan
Current status 60,000 m2 constructed Planned status 500,000 m2 business 60,000 m2 industry retail 850 residential units * The images are for illustration purposes only 75
Slide 76: Historic Rehovot
Historic Rehovot Current status 5,000 m2 constructed Planned status 40,000 m2 business 350 residential units 8,500 m2 retail 76
Slide 77: Historic Rehovot
Historic Rehovot Current status 5,000 m2 constructed Planned status 40,000 m2 business 350 residential units 8,500 m2 retail * The images are for illustration purposes only 77
Slide 78: Herzliya North
Herzliya North Current status 54,000 m2 constructed (excluding O2) Planned status 139,000 m2 industry and retail 340 small residential units * The images are for illustration purposes only 78
Slide 79: Herzliya North
Herzliya North Current status 54,000 m2 constructed (excluding O2) Planned status 139,000 m2 industry and retail 340 small residential units * The images are for illustration purposes only 79
Slide 80: Acre
Current status GAV®YAM
Slide 81: Acre
Acre Planned status About 1,000 residential units 81
Slide 82: Forward-looking information
For orwward-lo look okiing iin nfor orm mati tion on 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
Slide 83: Thank you
Thank you
Gav-Yam Lands — Investor Presentation (December 2022) on 6ix