Mivne Real Estate (k.d) Ltd. · TASE:MVNE
Mivne Real Estate (k.d) — Investor Presentation (June 2021)
40 slides from Mivne Real Estate (k.d)'s investor presentation, Jun 30, 2021
Slide 1: Capital Market Presentation June 30, 2021
CAPITAL MARKET PRESENTATION JUNE 30, 2021
Slide 2: Mivne: One Company, Many Advantages
Spread of properties from Dan to Eilat A broad variety of properties for all purposes – logistics, industry, ofces, commercial and residential Potential increase in rental fees Average property capitalization rate of 7.2%. MIVNE Hundreds of thousands of meters for planning and development in coming
Slide 3: Where Are We Headed?
Continued increase in equity Maintaining the Company’s rating Improvement in free cash flow (FFO) Continued presentation of improvement in NOI WHERE Decrease in operating costs ARE WE Decrease in financing costs Deepening the Company's activity in the field of rental housing and HEADED? student dorm
Slide 4: Mivne: The Israeli Home for Real Estate
MIVNE THE ISRAELI HOME FOR REAL ESTATE MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 4
Slide 5: Overview
OVERVIEW
Slide 6: Financial and Business Strength in the Shadow of Covid-19
1.5 billion NIS balance of cash and frame- 3.3 billion NIS value of works as of this date. unpledged assets 218 million NIS FFO from cash-generating Broad geographical distribution of tenants and buildings allowing non- properties 1-6/2021 versus 196 million NIS in the dependence on a specifc region
Slide 7: Data as of June 30 2021
81% public holdings 8.6 NIS attributed capital per share (after neutralizing Darban’s share) 6.5 10.96 EPRA per share NIS DATA 41.1% billion NIS Equity attributed to shareholders AS OF Ratio of debt to CAP JUNE 30 2021 Company’s rating AA Short-term debt rating of A-1 The Company’s share is included
Slide 8: Data as of June 30 2021
777,000 Potential future development m² 2,606 tenants in Israel 91.5% Occupancy rate in Israel 11.5 billion NIS has been constantly increasing in recent years Value of investment property DATA In the current period the occupancy rate has 533 increased by 0.9% AS OF 1.6 million NIS JUNE 30 2021 milli
Slide 9: Data as of June 30 2021
234 solar energy systems 118 Apartments have been handed over For which agreements have been signed for in the reported period. installation on the rooftops of Company buildings compared to 208 as of December 31 2020. 1,803 47 systems have already been installed of which 12 have been installed in th
Slide 10: Growth: FFO Forecast Revision
DEVELOPMENT OF FFO FROM CASH-GENERATING PROPERTIES – FORECAST REVISION In Millions of NIS | In Spite of the Covid-19 Crisis 429-445 17 Forecast update 404 396 GROWTH 366 420 302 +45% 2017 2018 2019 2020 2021F MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 10
Slide 11: Investment Property
INVESTMENT PROPERTY
Slide 12: Value of Cash-Generating Properties in Israel
INDUSTRIAL AND LOGISTICS OFFICES 3.8 BILLION NIS 3.4 BILLION NIS (1,009,000 M˜) (378,000 M˜) VALUE OF CASH- GENERATING SHOPPING CENTERS PROPERTIES 1.9 BILLION NIS (191,000 M˜) IN ISRAEL TOTAL 9.1 BILLION NIS (1,578,000 M˜) MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 12
Slide 13: Average Occupancy Rate in the Company's Properties in Israel
91.5% 90.6% 90% 88.6% AVERAGE 86% OCCUPANCY 84.6% RATE IN THE COMPANY’S PROPERTIES IN ISRAEL 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 30.6.2021 MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 13
Slide 14: Logistics and Industry
1,009,000 For the rental of logistical centers, m² 130 Million NIS NOI 1-6/2021 industry and storage 92.1% 5 million NIS increase in NOI SP 1-6/2021 compared to the The occupancy rate as of corresponding period last year and LOGISTICS June 30 2021 has been constantly improving over the past few year
Slide 15: Offices
378,000 For renting ofce buildings, m² 111 million NIS NOI 1-6/2021 74.5% of which are located in high-demand areas in central Israel. 1 million NIS increase in NOI SP 1-6/2021 89.9% occupancy rate as of June 30 2021 compared to the corresponding period last year and 4 million NIS over the correspon
Slide 16: Shopping Centers
191,000 m² of commercial rental space in Israel, in 56 Million NIS NOI 1-6/2021 17 shopping compounds, spread from north to south 1.5 million NIS increase in NOI 92.1% SP 1-6/2021 compared to the corresponding period last year and 4 million NIS decrease compared to the occupancy rate as of June 30 2
Slide 17: Housing Units for Rent
• In 2020 the Company decided to enter the feld of rental housing, student dormitories and public housing. • As part of this strategy, the Company has carried out a number of transactions, including the purchase of: ◆ The “Chen Hotel” housing collection in Jerusalem HOUSING ◆ 290 housing units in ce
Slide 18: Housing Units for Rent: National Deployment
NATIONAL DEPLOYMENT IN HIGH DEMAND AREAS RAMAT HASHARON 50 HOUSING UNITS RAMAT GAN HADERA 80 HOUSING UNITS 50 HOUSING UNITS BEN SHEMEN 80 HOUSING UNITS TOTAL 805 HOUSING UNITS FOR RENT 521 ROOMS IN STUDENT DORMITORIES KIRYAT ONO 30 HOUSING UNITS 121 UNITS IN STUDENT DORMITORIES JERUSALEM 315 HOUSING
Slide 19: Real Estate Outside of Israel
COUNTRY NUMBER OF ABOVE- OCCUPANCY FAIR VALUE NOI IN AVERAGE PROPERTIES GROUND RATE PRACTICE IN CAPITALIZATION AREA 1-6/2021 DATE SWITZERLAND 2 55,869 93.8% 360,848 12,691 7% UKRAINE 1 44,705 100% 248,992 14,146 11.2% FRANCE 5 119,447 98.4% 13,139 2,953 **27% REAL CANADA 2 59,017 66.3% 131,854 3,384
Slide 20: Residential
RESIDENTIAL
Slide 21: Data as of June 30 2021
1,803 housing units 6 Housing units In advanced stages of planning and that have not yet been sold in construction in leading high-demand completed projects areas. Over the past few years the Company has acted to plan added housing units 118 Housing Units Delivered in the on its land and planned mix
Slide 22: Residential Development Projects
RESIDENTIAL PROJECT/LOCATION PLANNED STATUS COST IN COMPANY’S BOOKS COMPANY’S SHARE HOUSING AS OF JUNE 30 2021 UNITS HAHASKALA BLVD. 360 74 housing units sold + signups 343 75% STRUCTURE – TEL AVIV AMINADAB STAGE A – Approaching completion, 167 housing 170 13 50% TEL AVIV units sold Start of marketi
Slide 23: Cross-Section of Housing Units Inventory
CROSS-SECTION OF HOUSING UNITS INVENTORY Projects underway 634 housing units underway New projects underway in 2021 DEVELOPMENT 103 housing units Land reserves for future projects 834 housing units MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 23
Slide 24: Development and Renewal
DEVELOPMENT AND RENEWAL
Slide 25: Initiation of Offices, Logistics and Commerce
Construction of mixed use buildings 185 Million NIS Expected increase in NOI as a Construction of modern and result of development in the next attractive logistical centers seven years INITIATION OF OFFICES, Future betterment potential: Focusing on LOGISTICS “From inventory to cash-generating” utili
Slide 26: Expected Increase in NOI from Projects Under Development
185 178 138 EXPECTED INCREASE IN NOI FROM PROJECTS UNDER 64 DEVELOPMENT, OFFICES, LOGISTICS AND COMMERCIAL 13 13 (In Millions of NIS) 7 2022 2023 2024 2025 2026 2027 2028 MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 26
Slide 27: Projects Under Development: Offices, Logistics, Industry and Employment
INDUSTRY AND EMPLOYMENT PROJECT NAME LOCATION USAGE BUILT-UP ESTIMATED ESTIMATED EXPECTED AREA COMPLETION COST NOI RANGE (IN M2) DATE BALANCE (IN Yokneam (IN MILLIONS MILLIONS OF NIS) OF NIS) Haifa HAHASKALA BLVD. Tel Aviv Ofces and 68,300 Q3/2025 527 80-90 Herzliya STRUCTURE commercial Kfar Saba Te
Slide 28: Solar Energy
SOLAR ENERGY
Slide 29: Solar Energy Systems – General
Over the course of 2021 the Company to a total of 8 million NIS per year (Company’s increased its investment in the feld of solar share). energy, fling requests to arrange 290 solar The expected yearly yield at the completion energy systems on the rooftops of buildings of the installation process of
Slide 30: Expected Monetary Results from Regulated Solar Energy Systems
EXPECTED FFO FROM THE SYSTEMS EXPECTED ELECTRICITY RECEIPTS AFTER COMMERCIAL OPERATION AFTER COMMERCIAL OPERATION EXPECTED 19 21 MONETARY RESULTS FROM REGULATED SOLAR ENERGY SYSTEMS 3 3 (In Millions of NIS) 1-6/2021 Yˇ˘ ear of ˇ fullˇ activation 1-6/2021 Y̌ear ˘ofˇ fullˇ activation MIVNE GROUP JUNE
Slide 31: Financial Data as of June 2021
FINANCIAL DATA AS OF JUNE 30 2021
Slide 32: Financial Fortitude: Debt to Cap Ratio and Net Financial Debt
DEVELOPMENT OF DEBT TO CAP RATIO AND NET FINANCIAL DEBT In Millions of NIS 71% 63.4% 56.6% 49.2% 43.4% FINANCIAL 41.1% FORTITUDE 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 30.6.2021 9,970 6,781 5,950 5,374 4,641 4,481 MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 32
Slide 33: Financial Fortitude: Expected Real Interest Rate
EXPECTED REAL INTEREST RATE DUE TO FINANCIAL DEBT Assuming debt redemption and refnancing according to the Company's current marginal recruitment cost. 2.69% 2.55% 2.49% 2.14% 2.02% 1.79% FINANCIAL 1.52% FORTITUDE 1.14% 1.16% 2021 2022 2023 2024 2025 2026 2027 2028 2029 MIVNE GROUP JUNE 30 2021 CAPI
Slide 34: Financial Fortitude: Cost of Debt
COST OF DEBT – AVERAGE ISRAELI DEBT INTEREST 7.66% 7.50% 7.35% 7.36% 7.27% Weighted cap Weighted cap Weighted cap Weighted cap Weighted cap rate deriving from rate deriving from rate deriving from rate deriving from rate deriving from cash-generating cash-generating cash-generating cash-generating c
Slide 35: Growth: Equity Attributed to Shareholders
EQUITY ATTRIBUTED TO SHAREHOLDERS In Millions of NIS 100 million NIS dividends 6,555 90 million NIS dividends 6,163 GROWTH 5,571 6,073 6,455 3,763 +100% 3,221 2017 2018 2019 2020 6/2021 MIVNE GROUP JUNE 30 2021 CAPITAL MARKET 35
Slide 36: EPRA NRV
EPRA NRV Recovery value of Company assets (net) in the long-term assuming continued activity and failure to realize assets IN THOUSANDS OF NIS JUNE 30 2021 DECEMBER 31 2020 EQUITY ATTRIBUTABLE TO SHAREHOLDERS 6,455,395 6,073,365 PLUS TAX RESERVE FOR REAL ESTATE REVALUATION 1,769,860 1,739,183 EPRA E
Slide 37: Balance Sheet Data
JUNE 30 DECEMBER 31 2021 2020 CASH AND CASH EQUIVALENTS 215 432 CASH-GENERATING INVESTMENT PROPERTY 11,350 11,161 AND PROPERTY UNDER DEVELOPMENT BALANCE INVESTMENTS IN ASSOCIATES 281 294 SHEET 5,020 5,408 DATA FINANCIAL LIABILITIES, INCLUDING DEBENTURES In Millions of NIS DEFERRED TAXES, NET 1,334 1
Slide 38: Profit Data
1-6/2021 1-6/2020 RENTAL AND MANAGEMENT FEE INCOME 436 431 TOTAL REVENUES 603 496 GROSS PROFIT 364 355 PROFIT REVALUATION OF INVESTMENT PROPERTY 269 239 DATA AND REAL ESTATE UNDER DEVELOPMENT In Millions of NIS OPERATING PROFIT 612 587 FINANCING EXPENSES, NET (106) (72) NET PROFIT 393 361 MIVNE GROU
Slide 39: Disclaimer
This is an English translation of the Hebrew capital market This presentation features forecasts, assessments, estimates and presentation, that was published on August 15, 2021 (reference no.: data referring to future events the realization of which is not certain 2021-01-131718) (hereafter: “the He
Slide 40: Thank You
THANK YOU
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