Melisron Limited · TASE:MLSR
Melisron — Investor Presentation (March 2024)
58 slides from Melisron's investor presentation, Mar 10, 2024
Slide 1: Capital Market Presentation for 2023
Capital Market Presentation for 2023 DISCLAIMER The following is an unofficial translation into the English language, for convenience purposes only, of the Annual Supplemental Presentation of Melisron Ltd. (“the Company”) for the year ended December 31, 2023 that was originally prepared in the Hebre
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Melisron Ltd. (the “Company”). The presentation Such forward-looking information is based solely on the Company’s good-faith is intended for investors only, to provide general information about the Company's assessments, its experience and professional kn
Slide 3: Melisron at a Glance
Melisron at a Glance Melisron Preface Since 1992 Melisron has been traded on 53% ilAA the TASE, and is included in of the share capital Bond series rating leading TASE indices, TA 125, is held by the public TA 35 and TA Real Estate Market CAP ilAA-\Positive NIS 13 billion High credit rating Portfoli
Slide 4: Map of Properties
Map of Properties Melisron Preface Neighborhood malls (7% of NOI) Regional malls (53% of NOI) Ofer Marom Center | Ofer Kenyoter | Ofer Ramat Aviv | Ofer Kiryon | Ofer Ofer Adumim | Ofer Sirkin | Ofer Harel* | Grand Canyon Haifa | Ofer Grand Canyon Ofer Nahariya Petach Tikva | Ofer Rehovot | Ofer Gra
Slide 5: Effects of the Iron Swords War
Effects of the Iron Swords War Melisron Preface Shopping Mall and Commercial Center Segment • At the outset of the war, shopping mall segment adversely impacted, but as time went by the effects of the war diminished and traffic in the malls returned to their pre-war levels. October sales dropped by
Slide 6: Effects of the Iron Swords War
Effects of the Iron Swords War Melisron Preface Residential and Offices Segment Construction Segment o In the first weeks of the war, o Currently there has been no constructions sites were adverse effect on the existing shutdown at the instructions of offices segment. the local authorities. o In the
Slide 7: Breakdown of the Company's Properties by Risk and Return
Breakdown of the Company's Melisron Properties by Risk and Return Preface Area Occupancy Value attributed Value NOI for 2023 Weighted Percentage (Company’s Rate to income- attributed to (NIS million) capitalization of NOI share) (%) generating rights and rate (%) (sqm (NIS million) construction (%)
Slide 8: Melisron Shopping Malls
Melisron Shopping Malls
Slide 9: Tenant Mix of the Malls
Tenant Mix of the Malls Mix by Income, based on Product Mix in Malls Melisron Shopping Malls Fashion, footwear and accessories 45% Home deco, electric appliances, technology products 12% General retail, service providers, leisure activities and gifts 12% Fast food and dining 9% Health and beauty car
Slide 10: Change in Sales Jan-Dec 2023
Analysis of Retail Sales (by segment) Total Sales in Ofer Malls for the period Jan-Dec 2023 amounted to NIS 9.3 billion Melisron Shopping Recovery of Retail Sales Change in Sales Jan-Dec 2023 (figures compared to Malls Compared to the corresponding period in 2022 corresponding month last year) Fashi
Slide 11: New Contracts, Exercise of Options and Renewal of Contracts in 2023
New Contracts, Exercise of Options and Renewal Melisron of Contracts in 2023 (Commercial and Offices) Shopping Malls Retail Office New contracts Exercise of New Exercise of New 18% 20% options and contracts options and contracts renewal of (tenant renewal of (tenant 16% contracts churn) contracts ch
Slide 12: Project under Construction - Ofer Yavne
Project under Construction Simulation. Company’s share Melisron 70% Shopping GLA 24,300 sqm Malls Uses of land - Retail and Office (Retail 17,000 sqm; Office 7,300 sqm) Investment to date NIS 74 million (100%) Total estimated construction costs NIS 406 million (100%) Expected NOI NIS 32 million (100
Slide 13: Project under Construction - Ofer Nof HaGalil
Project under Construction Simulation. Company’s share Melisron 90.9% Shopping Malls GLA 21,000 sqm Uses of land - Retail Total estimated construction costs NIS 355-365 million (100%) Expected NOI NIS 31-34 million (100%) Planning to be completed in 2025 Status of rentals - There are commercial agre
Slide 14: Project under Construction - Hutsot Hamifratz
Simulation. Company’s share Project under Construction Melisron 50% Shopping Malls GLA 19,000 sqm Uses of land - Retail Investment to date NIS 62 million (100%) Total estimated construction costs NIS 151 million (100%) Expected NOI NIS 18 million (100%) Planned completion of Jumbo and Fox 2024 Plann
Slide 15: Melisron Offices
Melisron Offices
Slide 16: Leading Tenants in Offices
Leading Tenants in Offices 330 Tenants of which leading companies traded on the stock exchange in Israel and worldwide Melisron Offices Annual NOI is NIS 296 million (based on 1-12, 2023) 7% Weighted capitalization rate 357,000 sqm Managed Space 4.5 billion NIS Value of income-generating properties
Slide 17: Project under Construction - Landmark Tel Aviv
Simulation. Company’s share Project under Construction Melisron 50% Offices GLA 166,000 sqm Offices, Commercial and Residential 116 units Investment to date NIS 1.8 billion Total estimated construction costs* NIS 2.6 billion Expected NOI NIS 313 million Expected income from the sale of apartments NI
Slide 18: Completed Project - Ofer Carmel
Completed Project Picture: Company’s share (In occupancy process) Melisron 100% Offices GLA 23,000 sqm Uses - Office Investment to date NIS 200 million Total construction costs estimated at NIS 200 million Expected NOI NIS 24 million (This year NOI was NIS 17 million) Status of Construction Construc
Slide 19: Completed Project - Ofer Park East Petach Tikva
Completed Project Simulation: Company’s share Melisron 74% (In occupancy process) Offices GLA 33,500 sqm Uses - Office Investment to date NIS 217 million Total construction costs estimated at NIS 252 million Construction completed In occupancy process Expected NOI NIS 31 million (This year NOI was N
Slide 20: Project under Development - Nof HaGalil Offices
Simulation. Company’s share Project under Development Melisron 90.9% Offices GLA 6,000 sqm Uses - Office Investment to date NIS 20 million Total construction costs estimated at NIS 50 million Expected NOI NIS 5 million Expected construction completion date of 2024 Status of Construction Construction
Slide 21: Melisron Residential Apartments
Melisron מליסרון מבוא Residential Apartments
Slide 22: Aviv Yizum | Residential Apartments
Aviv Yizum | Residential Apartments מליסרון Melisron מבוא Residential Apartments Expected number of Expected number 87% of the apartments are apartments to be of apartments to be sold built located in Givatayim, 100% (Aviv Yizum’s share) Ramat Gan and Tel Aviv Expected construction starts (numbe
Slide 23: Aviv Yizum | Expected Revenue and Gross Profit
Aviv Yizum | Expected Revenue and Gross Profit מליסרון Melisron מבוא Residential Apartments 87% Expected gross income Forecast of revenues from of the gross income (100% in NIS million) Yizum Expected - 2025-2030 (100% in NIS million) 696 4,453 14% of the gross income from projects under constru
Slide 24: Aviv Yizum | Developments from Acquisition Date through December 31, 2023
Aviv Yizum | Developments from Acquisition Date through מליסרון Melisron December 31, 2023 מבוא Residential Apartments Estimated number of Expected gross income Aviv Yizum apartments (Aviv Yizum’s share, NIS million) for sale (Residential Apartments) 58% 2,587 69% 1,944 884 627 1,638 1,151 1,378
Slide 25: Aviv Yizum - Shchakim Project
Simulation. Aviv Yizum’s share Aviv Yizum – מליסרון Melisron 88% Shchakim Project מבוא Residential Apartments Consideration NIS 1,177 million (including development costs and purchase tax) Residential units 733 apartments + 1,177 sqm commercial space Total expected profit from the project NIS 57
Slide 26: Aviv Yizum - Shirat Hayam
Simulation Aviv Yizum – מליסרון Melisron Shirat Hayam מבוא Residential Apartments Consideration NIS 171 million (including development costs and purchase tax) Residential units 126 apartments Total expected profit from the project NIS 79 million Date of start of construction Expected in 2025 Dat
Slide 27: New Transactions in the Period
New Transactions in the Period
Slide 28: Ofer Harel Mall
Picture Ofer Harel Mall מליסרון Melisron מבוא Residential Apartments NOI 2023 NIS 16.5 million Consideration NIS 32 million + waiver of loan of NIS 157 million Retail sales 2023 compared GLA 11,600 sqm to 2022 +8% Uses - Retail Occupancy 97% Estimated construction costs Additional building right
Slide 29: Lincoln Street Plot
Lincoln Street Plot מליסרון Melisron מבוא Residential Apartments Planning status Urban Building Plan approved GLA 25,500 sqm after Urban Simulation for 17,500 sqm, UBP submitted for Building Plan is approved for increasing building rights transferring of rights to 25,500 sqm Expected NOI NIS 56-
Slide 30: Review of Financial Results
Review of - Financial = Results on a SOON
Slide 31: Review of Financial Results for 2023
Review of Financial Results for 2023 מליסרון Financial מבוא Results NIS 1,037 million (NIS 426 million in Q4) Net profit Decrease of NIS 354 million compared to the (Owners’ share) corresponding period last year The State of Israel has been, since October, in the NOI NIS 1,348 million (NIS 322 m
Slide 32: Review of Financial Results for 2023
Review of Financial Results for 2023 מליסרון Financial מבוא Results Cash flow from NIS 979 million (NIS 224 million in Q4) current operations Increase of NIS 52 million compared to the corresponding period last year Occupancy Rates 99.2% in malls The State of Israel is currently in the throws of
Slide 33: FFO
FFO מליסרון Financial מבוא Results NIS millions 2023 2022 NOI - owners’ share 1,326 1,224 12% Administrative and general expenses (net of depreciation and share-based payment) (67) (65) Increase in FFO* compared to 2022 Advertising and marketing expenses (16) (18) Net of other operating loss 16
Slide 34: Value of Investment Property
Value of Investment Property | מליסרון Financial Owners’ Share, NIS million מבוא Results The increase is mainly due to the acquisition of new properties in an In 2023, the Company recorded an increase in amount of NIS 518 million, investments in properties and properties the value of its commerc
Slide 35: Net debt | Owners' Share, NIS million
Net debt | Owners’ Share, NIS million מליסרון Financial מבוא Results 10,678 380 39 1,147 9,803 979 288 Dec 31, 2022 Cash flow for Linkage Cash flow for Payment of The non-cash Dec 31, 2023 investment differentials investment dividend allotment activities activities 35 | Presentation for Capital
Slide 36: Efficient Utilization of Cost of Debt
עלויות החוב Efficient יעיל של Utilization ניצולof Debt of Cost מליסרון Financial LTV and Linked Average Cost of Debt 2011 - 2023 מבוא Results ( שיעור המינוף על נכסי החברהLTV) 20112023 ועלות החוב הצמוד הכוללת על פני השנים- 80% 6% 3.11 years 70% 4.7% Duration of Company’s Debt 5% 60% 3.
Slide 37: Spread of Debt Repayments over Years and Effective Interest
Spread of Debt Repayments over Years and Effective Interest on Debt Repayments מליסרון Financial מבוא Results 3,052 By the end of 2024, the Company must pay off a debt of approximately NIS 1.4 billion, principal and interest, and this after in January 2024 the Company refinanced bank loans amoun
Slide 38: Real Interest on the Financial Debt over the Years
Real Interest on the Financial Debt over the Years מליסרון Financial (Owners’ share) NIS millions מבוא Results Decrease of 60% 461 413 320 371 335 288 311 262 237 197 185 178 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 38 | Presentation for Capital Market for 2023 MELISRON
Slide 39: Weighted Capitalization Rate Compared to Weighted Linked Cost of Debt
Weighted Capitalization Rate Compared to the Company's מליסרון Financial Weighted Linked Cost of Debt מבוא Results 7.96% 7.82% 7.83% 7.66% 7.44% 7.57% 7.47% 7.51% 7.47% 7.39% 7.23% 7.21% 6.82% 7.01% 6.97% 6.82% 6.81% 6.76% 6.75% 6.75% 6.77% 6.95% 6.95% 6.96% 6.96% 6.99% 5.2% 4.8% 4.7% 4.7% 4.7%
Slide 40: Melisron ESG
Melisron ESG
Slide 41: Melisron ESG
Melisron ESG מליסרון Melisron ESG ESG The Company considers environmental issues, community In this context, an executive management forum was established with and corporate governance to be an integral part of its core the aim of promoting the issue of ESGs throughout the organization values. Mel
Slide 42: Melisron ESG
Melisron ESG מליסרון Melisron ESG ESG Melisron prepared a comprehensive mapping of its operations against the Goal 5 - Gender Equality Goal 4 - Quality Education Goal 6 - Clean Water and Sanitation United Nations 17 ESG Target 4.5 - to eliminate discrimination Target 5.5 - to ensure full participa
Slide 43: Protecting the Environment in Properties under Construction
Protecting the Environment in Properties under Construction מליסרון Melisron ESG ESG Landmark Tel Aviv - Offices GLA (sqm) 151,000 Green building standards allow the Expected construction start: Company to comply with high Under construction environmental and risk standards and ensure the use, pro
Slide 44: Projects under Development
Simulation - Ofer Nof HaGalil (Extension) Development Projects under
Slide 45: Development Momentum
Development momentum Projects under Construction NIS 258 million 161 thousand sqm 9 new real estate projects Expected 9 new real estate under construction and additional NOI of projects under occupation NIS 450-470 construction and Additions of occupation 306,000 sqm million (Company’s share) (Compa
Slide 46: Projects Under Construction and in Occupancy Process
Projects Under Construction and in Occupancy Process Projects NIS millions under Construction Expected date The Company’s Share of Rental of completion Estimated net carrying Estimated Actual Name of property holding of Primary use space Development of cost of the amount for the cost of NOI at full
Slide 47: Projects in Planning
Projects in Planning NIS millions Projects under Company’s Share of Estimated Expected net carrying Estimated NOI Construction date of start construction amount for Estimated cost of the Name of property holding of Primary use of property Rental space Status at full of completion Project at Project
Slide 48: Potential Future Increase in NOI
Potential Future Increase in NOI NIS millions Projects under Construction 33% 1,857 1,663 194 1,583 80 150 1,396 37 NOI Q4.2023 Occupation of Contribution from NOI Contribution of NOI NOI NOI Annual owners’ available space projects under presented at Landmark Tower presented after from future presen
Slide 49: Potential Future Increase in FFO (management concept)
Potential future increase in FFO (management concept) Projects NIS millions under Construction +34% 1,455 142 1,313 1,247 66 133 1,080 34 FFO Q4.2023 Occupation of Contribution from FFO Contribution of FFO FFO FFo Excluding Swords available space projects under presented as at Landmark Tower present
Slide 50: NOI and FFO over the years
NOI (owners’ share) and FFO (management concept) over the years Projects NIS millions under Construction FFO (management concept) +272% 1,080 1,455 1,313 640 584 695 529 887 475 723 427 391 461 717 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q4/2023 FFO FFO after excluding after future an
Slide 51: Projects in Planning
Projects in Planning Imaging.
Slide 52: Projects in Planning mid-term development
Projects in Planning mid-term development Projects in Planning Office space above Additional Retail space Nof HaGalil Mall Rehovot Mall GLA 21,000 sqm GLA 11,000 sqm Uses - Retail Uses - Office Expected NOI NIS 31-34 million Expected NOI NIS 12-13 million Estimated construction costs NIS 355-365 Est
Slide 53: Projects in Planning mid-term development
Projects in Planning mid-term development Projects in Planning Expansion of the Addition of an office tower Harel Mall in the Ofer Carmel Park GLA 18,000 sqm GLA 8,700 sqm Uses - Office Uses – Retail and office Expected NOI NIS 12-14 million Expected NOI NIS 18-20 million Total estimated constructio
Slide 54: Projects in Planning Mid-term Development
Projects in Planning Mid-term Development Projects in Planning Additional office tower Addition of office adjacent to the Ofer space in the Ofer Mall in Petach Tikva Yokne’am Park GLA 25,000 sqm GLA 35,000 sqm Uses - Office Uses - Office Expected NOI NIS 24-26 million Expected NOI NIS 30-32 million
Slide 55: Distribution according to Company's Main Operating Segments
Distribution according to Company’s Main Operating Segments Projects in Current NOI and NOI after completion of existing mid-term development and Aviv Yizum weighted operations Planning 12% 5% 23% 28% 60% 72% Weight of operating segments Weight of current After full occupancy of the existing operati
Slide 56: Projects Planned for Construction without Determined Estimates
Projects Planned for Construction for which Estimates have Projects in Planning not yet been determined The Company’s net Share of carrying amount of the Name of property holding of Primary use of property Rental space Status Project at December 31, property 2023 (in NIS millions) Ofer Ramat Aviv 10
Slide 57: Projects in Planning Long-term Development - Ofer Shopping Mall Ramat-Aviv
Projects in Planning Long-term Development Projects in Planning Ofer Shopping Mall Ramat-Aviv GLA 90,000 sqm Mixed uses - retail, rental residential, office and hotel Expected NOI Not yet determined Total estimated construction costs Not yet determined Carrying amount NIS 74 million Planning status
Slide 58: Thank you for your attention
Melisron Ofer Investment Group Thank you for your attention. For additional information: Tal Frumer, Corporate Controller and Head of IR 09-9525555 | talfr@melisron