Discount Investment Corp. Ltd. · TASE:DISI

Discount Investment — Gav-Yam Property & Building — H1 2020 Earnings Presentation

51 slides from Discount Investment's earnings presentation, Dec 7, 2020

  1. Slide 1: Gav-Yam Property & Building Corp. June 30, 2020

    GAV~ YAM June 30, 2020 PROPERTY & BUILDING CORP. IDB GROUP

  2. Slide 2: Financial strength in Covid-19

    Financial strength in Covid-19 ➢ Cash and cash equivalents - NIS 1.6 billion ➢ Leverage - 50% ➢ 100% of the assets unmortgaged. ➢ Debt - rating AA Maalot s&p, Aa2 Midrog Moody’s ➢ Average CAP rate of the income-producing properties - 7.41% ➢ Order backlog in the lease agreements -NIS 2.4 billion (As

  3. Slide 3: A diversified portfolio of Income-Producing Properties

    A diversified portfolio of Income-Producing Properties Revenues distribution by sectors Hi-tech and offices - 74% of the company annual revenues RETAIL 7% Well-established international companies. LOGISTICS AND INDUSTRY Property portfolio is diversified, both geographically, and sectors 19% HI-TECH

  4. Slide 4: A diversified portfolio of Income-Producing Properties (contd.)

    A diversified portfolio of Income-Producing Properties(CONTD.) Revenues distribution by sectors Industry and logistics properties - 19% of the company annual RETAIL 7% revenues LOGISTICS AND INDUSTRY RETAIL - 7% of the company annual revenues 19% HI-TECH AND OFFICES (All retail areas in the Company'

  5. Slide 5: About Gav-Yam

    About Gav-Yam ➢ A public company traded in the Tel Aviv stock exchange. Included in the TA-90 index ➢ Total area for rent 1,010,000 sq.m ➢ Value of investment properties - NIS 8.0 billion (100% unmortgaged) 5

  6. Slide 6: Summary of H1/2020

    Summary of H1/2020 Lease Agreements Planning a total area of 68 lease agreements signed in H1/2020, related to under Planning, Construction & Marketing 8 projects 288,600sq.m GY’s share- 234,000sq.m 66,000 sq.m aboveground with annual revenues With an construction costs of sums to NIS 1.7 billion, w

  7. Slide 7: Highlights of H1/2020

    Highlights of H1/2020 Increase in all the operational parameters Q2/2020 Vs. Q2/2019(NIS Millions) (NIS Millions H1/2020 Vs. H1/2019(NIS Millions) 10% 8.5% 9.3% 8.0% 7.4% 5.6% 16% 10% 123 242 259 267 59 121 130 133 FFO EBITDA NOI Rental FFO EBITDA NOI Rental Attributed to the Attributed to the share

  8. Slide 8: Highlights of H1/2020

    Highlights of H1/2020 Completion of GY – Holon Second building 22,000 sq.m (of which 13,000 sq.m aboveground) GY`s share - 15,000 sq.m 5,300 sq.m - leased 6,700 sq.m - sold FFO EBITDA NOI ‫מיוחס לבעלי‬ ‫המניות‬ 8

  9. Slide 9: High quality properties & prime locations

    High quality properties & prime locations 9 9

  10. Slide 10: Our Main Tenants

    Our Main Tenants 438 Tenants 25 Companies are traded on the world's leading stocks exchange 20 Companies are traded on the Tel Aviv Stock Exchange Average agreements duration 4.5 years‫שנים‬ Order backlog NIS 2.4 billion (for 31.12.2019) 10

  11. Slide 11: Value of Income-Producing Properties sectorial distribution

    Value of Income-Producing Properties sectorial distribution Average CAP RATE - 7.41% LOGISTICS AND INDUSTRY HI-TECH AND OFFICES Area – 239,900 sq.m Area- 696,000 sq.m (1) NIS 1,273 million NIS 5,364 million Cap Rate-7.7% Cap Rate-7.3% 18% Value of Income- Producing Properties 76% NIS 7,071 million R

  12. Slide 12: Illustration

    Illustration Illustration Illustration 12

  13. Slide 13: Property Upgrade - Past, Present & Future

    Property Upgrade - Past, Present & Future 1999 2020 Future Built area-60,000 sq.m Built area-272,000 sq.m Annual Revenues -NIS 38 million Annual Revenues -NIS 142 million ‫בעתיד‬ Illustration 13

  14. Slide 14: Property Upgrade - Past, Present & Future

    Property Upgrade - Past, Present & Future 1992 2020 Future Illustration Built area-A few thousand sq.m Built area-114,000 sq.m Town planning for additional Annual Revenues -NIS 1 million Annual Revenues -NIS 66 million approx. 27,700 sq.m 14

  15. Slide 15: Property Upgrade - Past, Present & Future

    Property Upgrade - Past, Present & Future North Future ‫ מ"ר‬33,000 -‫שטח בנוי‬ 2007 2020 ‫ מיליון‬15 -‫הכנסה שנתית‬ ‫ש"ח‬ Illustration Built area-33,000 sq.m Built area-131,000 sq.m Town planning for additional approx. Annual Revenues -NIS 15 million Annual Revenues -NIS 93 million 27,000 sq.m (und

  16. Slide 16: Property Upgrade - Past, Present & Future

    Property Upgrade - Past, Present & Future Potential Built area-80,000-100,000 sq.m ❶ ❸ 2008 Completed Under planning ❷ under construction Illustration Built area-40,000 sq.m 16

  17. Slide 17: Highlights of Financial Data: H1/2020

    Highlights of Financial Data: H1/2020 H1/2020 Vs.H1/2019 16% (30.2%) 10.6% 10.0% 1.3% 9.7% 8.5% 123 125 198 242 228 259 267 Net profit Same FFO Net cash EBITDA Rental Attributed to the Attributed to the From operating Properties NOI shareholders share holders activities NOI Revenues 17

  18. Slide 18: Highlights of Financial Data (NIS millions)

    Highlights of Financial Data (Nis millions) 30.6.2020 31.12.2019 30.6.2020 31.12.2019 Gross Financial Liquid resources 1,575 1,479 Debt 5,044 4,669 Value of investment properties, 7,967 7,770 Including : Other Liabilities 470 436 Investment property under construction 381 259 Deferred taxes 994 972

  19. Slide 19: Growth in sq.m of Income-Producing Properties & Rental Revenues

    Growth in sq.m of Income-Producing Properties & Rental Revenues 995,000 1,010,000 919,000 892,000 877,000 859,000 808,000 758,000 736,000 510 445 459 421 392 338 346 361 267 267 246 2012 2013 2014 2015 2016 2017 2018 2019 H1/2019 H1/2020 19 Rental Revenues (NIS Million) Income-Producing Properties s

  20. Slide 20: Growth NOI (NIS million)

    Growth NOI (NIS million) 490 430 441 406 377 349 323 333 259 236 2012 2013 2014 2015 2016 2017 2018 2019 H1/2019 H1/2020 20

  21. Slide 21: Growth EBITDA (NIS million)

    Growth EBITDA (NIS million) 458 401 407 375 353 328 298 308 242 220 2012 2013 2014 2015 2016 2017 2018 2019 H1/2019 H1/2020 21

  22. Slide 22: Stable Leverage and Growth in Rental Revenues

    Stable Leverage and Growth in Rental Revenues Leverage (%) 49 53 51 49 50 45 47 47 50 551-554 532-535 510 445 459 421 392 361 Update forecast 338 346 267 Rental Revenues (NIS million) 2012 2013 2014 2015 2016 2017 2018 2019 H1/2020 2020E 2020E 22

  23. Slide 23: Growth Value of investment properties (NIS million)

    Growth Value of investment properties (NIS million) Value of investment properties for 30.6.2020 (NIS million) 7,770 7,967 6,752 6,379 100% 100% 5,858 Under Construction Land 5,497 100% 381 515 5,156 4,930 5% 6% 4,457 85% 86% 83% 83% 82% 84% Income producing properties, 7,071 89% 2012 2013 2014 2015

  24. Slide 24: Debt Repayment (NIS million)

    Debt Repayment (NIS million) Debt - rating Average Duration - 4.6 Gross Financial Debt - Effective Interest rate - AA Maalot s&p, Aa2 Midrog years 2.8% (average) NIS 5,044 million 3.7 2.6 3.0 3.0 3.2 3.0 3.0 2.6 1.92.6 - 2.6 Unlinked Debt * 1,906, 910 CPI- linked 38% Debt 777 3,138, 62% 617 640 640

  25. Slide 25: Highlights of Financial Data Expand Solo (NIS Million)

    Highlights of Financial Data Expand Solo* (NIS Million) H1/2020 H1/2019 Increase (%) Rental Revenues 220 201 9.5 NOI 214 194 10.3 Same Property NOI 186 184 1.1 EBITDA 201 181 11.0 Income from increase in fair value 36 113 (68.1) Financing expenses, net 67 75 (10.7) Taxes expenses 44 43 2.3 Net profi

  26. Slide 26: Highlights of Financial Data Expand Solo (NIS Million)

    Highlights of Financial Data Expand Solo* (NIS Million) 30.6.2020 31.12.2019 30.6.2020 31.12.2019 Gross Financial Cash and cash equivalents 1,395 1,280 Debt 4,648 4,254 Value of investment properties, 6,708 6,472 Including : Other Liabilities 450 400 Investment property under construction 307 204 De

  27. Slide 27: Growth in FFO attributable to shareholders (NIS Million)

    Growth in FFO attributable to shareholders (NIS Million) 231 199 187 170 159 135 132 132 123 106 2012 2013 2014 2015 2016 2017 2018 2019 H1/2019 H1/2020 27

  28. Slide 28: Under Planning, Construction & Marketing Projects

    Under Planning, Construction & Marketing 8 Projects GY Negev #4 GY Haifa Bay #2 Matam East GY Ha`Ivrit Park #1+2 2 1 173,000 sq.m (GY`S share 146,500 sq.m) Illustration GY Haifa Bay #3 GY Gderot #1 GY Ra`anana #1 #1 ToHa - Particle parking After the completion and 3 occupancy of the projects : 1,244

  29. Slide 29: Under Planning, Construction and Marketing

    Under Planning, Construction and Marketing Above Construction To be paid, Revenues Parking Total GY’s share Status The Project ground cost 30/06/2020 (1) Yield (5) Area (sq.m) Nis Million, GY’s share To Be completed GY Negev #4 13,000 - 13,000 13,000 89 22 9 10.1% during 2020 GY Haifa Bay #2 10,600

  30. Slide 30: Under Planning, Construction and Marketing, Expand Solo

    Under Planning, Construction and Marketing, Expand Solo* Construction To be paid, GY’s share Revenues (1) Status The Project cost 30/06/2020 Yield (5) Area (sq.m) Nis Million, GY’s share To Be completed GY Negev #4 9,500 65 16 6.6 10.1% during 2020 GY Haifa Bay #2 10,600 56 18 5 8.9% Matam-East 46,6

  31. Slide 31: To Be Completed During 2020: GY Negev #4

    To Be Completed During 2020: GY Negev #4 2 4 31 Photo- July 2020

  32. Slide 32: To Be Completed During 2020: GY Negev #4

    To Be Completed During 2020: GY Negev #4 ‫עילי‬ 4 Built area: 13,000 sq.m aboveground Completion: Q3/2020 32

  33. Slide 33: GY Haifa Bay

    GY Haifa Bay The new Haifa Bay (under construction) 1 3 1 7,200 sq.m Completed and leased 10,600 sq.m 2 2 under construction & marketing Illustration 3 5,500 sq.m Under planning 33

  34. Slide 34: Under Construction: GY Haifa Bay #2

    Under Construction: GY Haifa Bay #2 1 2 Illustration 2 2 Built area: 10,600 sq.m Completion: Q4/2020 34 Photo- July 2020

  35. Slide 35: Under Planning: GY Haifa Bay #3

    Under Planning: GY Haifa Bay #3 3 Illustration 3 Built area: 5,500 sq.m 35

  36. Slide 36: Under Planning & Construction: Matam-East

    Under Planning & Construction: Matam-East 2 1 Matam East 1+2: 56,000 sq.m aboveground 36,000 sq.m underground Completion: Q4/2021 (Building 1) Illustration Q2/2022 (Building 2) 36

  37. Slide 37: Under Construction: Matam-East

    Under Construction: Matam-East 37 Photo- July 2020

  38. Slide 38: Under Construction: GY Ra'anana Park #1

    Under Construction: GY Ra’anana Park #1 1 25,400 sq.m aboveground 32,600 sq.m underground Completion: Q2/2022 Combination transaction, GY’s share- 69.5% Illustration *Including parking attributed to building#2 38

  39. Slide 39: Under Construction: GY Ra'anana Park #1

    Under Construction: GY Ra’anana Park #1 39 Photo- July 2020

  40. Slide 40: GY Gderot Park

    GY Gderot Park 2 1 2 Illustration 40

  41. Slide 41: Under Planning: GY Gderot #1

    Under Planning: GY Gderot #1 1 1 Built area: 7,500 sq.m Illustration Fully Leased 41

  42. Slide 42: Under Planning: GY Ha'Ivrit Park #1+#2

    Under Planning: GY Ha`Ivrit Park #1+#2 1 2 55,000 sq.m aboveground 30,000 sq.m underground Initial Illustration 42

  43. Slide 43: Under Construction: Particle parking of ToHa2 + Landscape of ToHa1

    Under Construction: Particle parking of ToHa2 + Landscape of ToHa1 Partial Parking of Landscape ToHa2 of ToHa1 Completed The works include piling, construction of a parking lot under the second tower. ToHa2 Parking footprint 43 Photo- July 2020

  44. Slide 44: Under Construction: Landscape of ToHa1

    Under Construction: Landscape of ToHa1 44 Photo- July 2020

  45. Slide 45: Town Building Plans: ToHa2

    Town Building Plans: ToHa2 ToHa2 The local committee approved ToHa2 town building plan for “deposit”: 140,000 sq.m ToHa1 1,500 parking places * GY`s share - 50% Illustration 45

  46. Slide 46: Town Building Plan GY O2 Park, Herzliya

    Town Building Plan GY O2 Park, Herzliya GY O2 Park, Herzliya Town planning for additional approx. 27,000 sq.m, under process. Today Illustration 46

  47. Slide 47: Continued growth: Building rights available for construction

    254,000 sq.m 18,000 sq.m Continued growth: ‫ מ"ר‬8,000 Building rights ‫ מ"ר‬19,000 ‫ מ"ר‬17,000 476,000 sq.m available for construction ‫ מ"ר‬46,000 (main areas, not including projects under planning and construction) ‫ מ"ר‬9,000 ‫ מ"ר‬105,000 47

  48. Slide 48: Under Planning: GY Holon Park #3

    Under Planning: GY Holon Park #3 Future Metro Station 3 Illustration 48

  49. Slide 49: Under Planning: GY Rehovot #5

    Under Planning: GY Rehovot #5 7 Planning & 8 Licensing 9 Completed 4 5 6 Illustration 49

  50. Slide 50: Donations

    Donations In April, the company donated NIS 1.5 million to two hospitals and three charitable organizations. In Addition, Matam company donated during 2019-2020 NIS 500,000 to "YAHAD " organization for the lone soldiers (fit-up cost in Haifa Congress Center). Renovation area in Haifa Congress Center

  51. Slide 51: Thanks

    Thanks GAV YAM PROPERTY & BUILDING CORP. IDB GROUP

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