G City Ltd. · TASE:GCT
G City — Gazit-Globe — Q2 2018 Earnings Presentation
21 slides from G City's earnings presentation, Aug 21, 2018
Slide 1: Q2 2018 Financial Results
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE Q 2 2018 FINANCIAL RESULTS INTERNACIONAL SHOPPING | S ÃO P AULO S HOPPING L IGHT | S ÃO P AULO G - C ITY | R ISHON L EZION G - TZAMERET | TEL AVIV G | KFAR SABA B RICKELL | M IAMI B RIDGE T OWER | N EW Y ORK
Slide 2: Disclaimer
DISCLAIMER GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE This presentation may include forward - looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues. Forward - looking statements may relate to, among other
Slide 3: Second Quarter 2018 – Highlights
0.89 0.91 Q2/2017 Q2/2018 Economic FFO per share in the Quarter – Excluding Regency SECOND QUARTER 2018 – HIGHLIGHTS GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE Strong Operational Performance in All Territories 490 504 Q2/2017 Q2/2018 3.1 % Canada - FCR Northern Europe Central & Eastern Europ
Slide 4: Second Quarter 2018 – Highlights: Strategy and Acquisitions
SECOND QUARTER 2018 – HIGHLIGHTS GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE Continued execution of our strategy to increase our share investments in our private subsidiaries and invest in mixed use retail based assets in major urban markets • The Company sold in 2018 18.5 million shares of R
Slide 5: The Latest Acquisition of Gazit Horizons
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE THE LATEST ACQUISITION OF GAZIT HORIZONS THE EDGE I BROOKLYN, NY Acquired in July 2018 for $ 47.3 million. 60,000 sqf retail condominium complex in Williamsburg, Brooklyn. It is a luxury complex that includes over 900 residential units, a 500 space
Slide 6: Development and Expansion
G CITY ( DEVELOPMENT EXPANSION) G KOCHAV HAZAFON DEVELOPMENT AND EXPANSION – More than NIS 260 million ($ 74 million) of ongoing development in advanced stages GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE GAZIT ISRAEL ISRAEL GAZIT’S OWNERSHIP 100% EXPECTED GLA (SQM) 13,265 (142,700 sqf) EXPECT
Slide 7: Gazit Israel Development Pipeline
▪ Land plot of 2.3 acre adjacent to our mall – G Kfar Saba, Israel. ▪ The Company submitted for building permits. ▪ The land is located 500 m from the Company’s shopping center G Tel Baruch, Tel Aviv. ▪ In January 2018 a plan for reparcellation has been submitted and is in discussion stage. Water Fa
Slide 8: Development Pipeline – Additional Rights
G CITY ( ADDITIONAL RIGHTS) 6 1 G KFAR SABA ( ADDITIONAL RIGHTS) GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE DEVELOPMENT PIPELINE ADDITIONAL BUILDING RIGHTS ~ 63 , 000 sqm ( 678 , 000 sqf ) out of which 13 , 000 sqm are under construction ( 140 , 000 sqf ) ADDITIONAL BUILDING RIGHTS* ~ 4 , 00
Slide 9: Business Update
BUSINESS UPDATE GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE ▪ Internacional – The acquisition of 70 % of the mall, 77,000 sqm ( 829,000 sqf ) for R$ 937 million (US$ 284 m), was closed on April 2 , 2018 . Since then, 16 stores were leased ( 15 of them new), 28 kiosks were opened, 28 new media
Slide 10: Financial Results Q2 2018
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE FINANCIAL RESULTS Q 2 2018 G CITY I RISHON LE’TZION 41 WINTER STREET I BOSTON I MA
Slide 11: Second Quarter 2018 – Highlights: Geographic Spread
490 504 Q2/2017 Q2/2018 394 423 Q2/2017 Q2/2018 GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE Same property NOI growth of 13.9 % in Brazil and 4.9 % in Israel GEOGRAPHIC SPREAD SECOND QUARTER 2018 – HIGHLIGHTS NOI (consolidated) increased by 2.9 % 9 40 NOI Q 2 / 18 Others (1) The NOI is as pres
Slide 12: NOI of Our Private Subsidiaries
GAZIT BRASIL – Increase of 32.5 % compared to same quarter in 2017 GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE NOI OF OUR PRIVATE SUBSIDIARIES GAZIT ISRAEL – Increase of 8.0 % compared to same quarter in 2017 • Same Property sales in the period increased by 4 . 1 % compared to the same period
Slide 13: Geographic Spread – Increase in Occupancy Rate
Geographic Spread Total GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE INCREASE IN OCCUPANCY RATE OF 1.4 % TO 95.0 % 96.3 % 95.5 % 92.6 % 92.5 % 96.3 % 96.3 % 97.0 % 96.0 % 98.0 % Canada Northern Europe CEE Brazil Israel 30/06/2017 30/06/2018 94.9 % 96.3 % Total
Slide 14: Economic FFO per Share
1.36 1.49 0.42 0.28 H1/2017 H1/2018 Economic FFO per share in the period decreased by 0.6 % compared to same period in 2017 Pro Forma FFO per share, excluding Regency, % 9.8 increased by Excluding Regency Economic FFO per share in the quarter increased by 2.2 % compared to same quarter in 2017 Pro F
Slide 15: Other P&L Highlights
( 1 ) OTHER P&L HIGHLIGHTS (in NIS millions except per share data) (Unaudited) 3 Months ended June 30 6 Months ended June 30 change change Consolidated cash flow from operating activities 59 - 186 Loss attributable to equity holders of the company 371 - Loss per share attributable to equity holders
Slide 16: Balance Sheet Highlights
53.9 % 53.4 % 52.1 % 6/30/2017 12/31/2017 6/30/2018 LTV ( consolidated) decreased by 0.3 % BALANCE SHEET HIGHLIGHTS LTV ( expanded solo) decreased by 1.3 % GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE ʥ Million NIS Equity decreased by NIS 684 million Equity per share decreased by NIS 3.2 per s
Slide 17: Financial Strength
FINANCIAL STRENGTH MORUMBI | S ÃO P AULO KOCHAV HATZAFON | T EL A VIV GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE BRIDGE TOWER I NEW YORK I NY
Slide 18: Well Staggered Debt Maturity Schedule – Expanded Solo
294 1,453 1,166 1,027 801 1,060 1,169 713 994 908 344 3.0 % 14.6 % 11.7 % 10.3 % 8.1 % 10.7 % 11.8 % 7.2 % 10.0 % 9.1 % 3.5 % 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 3,000.0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 ʤʩʸʧʠʬʥ (*) Adjusted for Series 3 an
Slide 19: Liquidity and Financial Strength
6.6 3.8 (1) Cash, short term securities and unutilized credit facilities. Not including liquidity in FCR amounting to NIS 1.4 B LIQUIDITY AND FINANCIAL STRENGTH The company and its private subsidiaries Consolidated subsidiaries Liquidity NIS billions GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTAT
Slide 20: Appendix A - Exiting Equity One
Appendix A - Exiting Equity One GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE Our execution actions have generated positive value of $ 135 m, in a declining market environment In January 2016 we announce our strategy to reduce the share of our public holdings Million USD Million USD EQY value b
Slide 21: Thank You for Your Time – Contact Information
Internacional Shopping Plano de Expansão T OP C ENTER | S ÃO P AULO T OP C ENTER | S ÃO P AULO ʭʧʺʮ G ʺʸʮʶ ʡʩʡʠʬʺ ʭʧʺʮ G ʠʡʱʸʴʫ C IDADE J ARDIM | S ÃO P AULO G - C ITY | R ISHON L EZION Adi Jemini EVP & CFO GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE THANK YOU FOR YOUR TIME. CONTACT INFORMATI