Reit 1 Ltd · TASE:RIT1
Reit 1 — Investor Presentation (March 2024)
28 slides from Reit 1's investor presentation, March 2024
Slide 1: Company Presentation 31.12.2023
COMPANY PRESENTATION 31.12.2023 REIT 1 – THE FIRST AND LEADING REAL ESTATE INVESTMENT TRUST IN ISRAEL THE FIRST REAL ESTATE INVESTMENT TRUST IN ISRAEL
Slide 2: Disclaimer
2 DISCLAIMER The Company’s assessments of its forecasted financial outcomes, including its assessments regarding the possible impact of the business environment and the war on the Company’s activity and future outcomes, constitute forward- looking information as defined in the Securities Law 1968 (“
Slide 3: Overview
3 OVERVIEW ESTABLISHMENT Established in 2006 as Israel’s first Real STOCK EXCHANGE Included in TA 125, TA Real Estate, TA Israeli CRE, Estate Investment Trust (REIT) Tel Div and Tel Bond 40 INCOME PRODUCING RATING PROPERTIES Issuer Rating: ilAA/Negative Maalot S&P Issue Rating: AA Maalot S&P 57 prop
Slide 4: Sectorial and Geographic Diversification
4 10% SECTORIAL AND 34% 15% GEOGRAPHIC Tel Aviv Metropolitan Central Israel DIVERSIFICATION North Israel South Israel – 75% of properties located in the center of Israel 61% 41% – Increased diversification 51% especially in industrials and logistics – Industrials and logistics 30% sector expected to
Slide 5: Investing in REIT1
5 INVESTING IN REIT1 GROWTH STRATEGY: SUBJECT TO PROVISIONS OF – Only in Israel ISRAELI LAW: – REIT1 is the first and largest – Geographic diversification – Maximum leverage of up to 60% (LTV) investment trust in Israel – Sectorial diversification – Property development limited to 5% – The Trust is
Slide 6: Diversified Portfolio
DIVERSIFIED PORTFOLIO Offices Retail Industrials & logistics Nursing homes Parking Hospitality HaMenofim, Herzliya
Slide 7: Infinity Park Ra'anana
1. Infinity Tower 2. Infinity Campus 3. Infinity Plaza 7 INFINITY PARK Construction completed in August 2023 RA'ANANA – Approx. 55,000 sqm – Office space 150,000 sqm – Of which dining, retail & recreation Expected yearly NOI from the park after tower completion and renovation areas 10,000 sqm 1 (ass
Slide 8: Diversified Portfolio Offices
8 DIVERSIFIED PORTFOLIO OFFICES Daniel Frish, TLV HaYovel Tower, TLV GLA: 20,000 sqm GLA: 73,000 sqm Ownership share: 65% (parking 80%) Ownership share: 50% HaArba'ah, TLV Rothschild, TLV GLA: 17,000 sqm GLA: 23,000 sqm Ownership share: 35% (parking 50%) Ownership share: 50%
Slide 9: Diversified Portfolio Offices
9 DIVERSIFIED HaMenofim, Herzliya GLA: 17,000 sqm Hashmonaim, TLV GLA: 8,000 sqm Global Park, Lod GLA: 21,000 sqm PORTFOLIO Ownership share: 50% Ownership share: 60% Ownership share: 50% OFFICES Sapir, Herzliya GLA: 7,500 sqm Tulipman, Rishon LeZion GLA: 17,000 sqm Efal, Petach Tikva GLA: 8,000 sqm
Slide 10: Diversified Portfolio Retail
10 Emek Center, Friendly, DIVERSIFIED Afula Gan Yavneh PORTFOLIO GLA: 22,000 sqm GLA: 16,700 sqm Ownership share: 60% Ownership share: 75% RETAIL West Design, Sarona Rishon LeZion Gardens, TLV GLA: 24,000 sqm GLA: 6,200 sqm Ownership share: 65% Ownership share: 50%
Slide 11: Diversified Portfolio Retail and Hospitality
11 DIVERSIFIED Strip Mall, Hadera GLA: 13,400 sqm Power Center, Modi’in GLA: 11,000 sqm Lev Talpiyot, Jerusalem GLA: 17,000 sqm PORTFOLIO Ownership share: 100% Ownership share: 50% Ownership share: 100% RETAIL Globus Center, Netivot G Rothschild Mall, GLA: 14,000 sqm Rishon LeZion HOSPITALITY Owners
Slide 12: Diversified Portfolio Industrials & Logistics
12 Hartuv Kfar Masaryk DIVERSIFIED Construction GLA: 30,000 sqm PORTFOLIO completed: 08.2023 Ownership share: 50% GLA: 30,000 sqm Ownership share: 50% Occupancy rate: 91% INDUSTRIALS & LOGISTICS Neot Hovav Teradion GLA: 18,200 sqm GLA: 44,000 sqm Ownership share: 100% Ownership share: 100%
Slide 13: Diversified Portfolio Industrial & Logistics
13 DIVERSIFIED Alon Tavor GLA: 42,000 sqm Hadera GLA: 7,000 sqm Beit Shemesh GLA: 50,000 sqm (Leased) PORTFOLIO Ownership share: 50% Ownership share: 95% Ownership share: 40% Expected completion: 2025 INDUSTRIAL Alon Tavor GLA: 40,000 sqm Sderot GLA: 11,500 sqm & LOGISTICS Ownership share: 25% Owner
Slide 14: Diversified Portfolio Nursing Homes
14 Nes Tziona Haifa DIVERSIFIED GLA: 19,000 sqm Ownership share: 80% GLA: 13,000 sqm Ownership share: 50% PORTFOLIO NURSING HOMES Nesher Ashdod GLA: 22,000 sqm GLA: 12,000 sqm Ownership share: 50% Ownership share: 100%
Slide 15: Diversified Portfolio Parking
15 Hakikar Lot, Sky Tower, DIVERSIFIED Tel-Aviv Tel-Aviv PORTFOLIO 540 parking spaces 400 parking spaces Ownership share: 67.5% Ownership share: 90% PARKING City Tower, Karta, B.S.R 3+4, Ramat-Gan Jerusalem Bnei-Braq 400 parking spaces 835 parking spaces 277 parking spaces Ownership share: 100% Owne
Slide 16: Financial Data
FINANCIAL DATA
Slide 17: Financial Data Highlights
17 FINANCIAL DATA % Change 2023 2022 2021 % Change Q4 Q4 Q4 Highlights 2022-2023 2022-2023 2023 2022 2021 NOI* 1.0% 423.0 418.7 349.2 )7.5%( 102.3 110.6 94.9 NOI same property** 6.1% 378.8 356.9 - 1.3% 96.6 95.3 - * The increase in NOI is mainly due to increased income from same properties and newly
Slide 18: Financial Data FFO Calculation
18 FINANCIAL DATA 2023 Q4.2023 Q3.2023 Q2.2023 Q1.2023 2022 2021 FFO Calculation Nominal FFO, ISA directives 153.9 57.8 41.9 20.2 34.0 133.5 185.6 Additional Adjustments: Share-based Payment 21.4 4.6 5.6 5.6 5.6 8.7 6.1 Other Adjustments 3.0 0.8 0.6 1.1 0.5 2.3 (8.4) Nominal FFO, Management 178.3 63
Slide 19: Financial Data NOI
19 ILS millions 502-517 FINANCIAL DATA 500 NOI 452-462 450 423 419 Growth in 2023 despite 400 evacuation of essential tenant 260% 349 342 and impact of the war 350 324 301 300 273 * ILS 33 million NOI from Ra’anana’s Infinity 240 Park included (compared to ILS 13 million in 250 2023 and ILS 48 milli
Slide 20: Financial Data Adjusted FFO
20 FINANCIAL DATA ILS millions 353-368 350 Adjusted FFO 314 303-313 (management approach) 300 294 Decrease in 2023, due to 346% 250 254 250 evacuation of essential tenant 232 and increase in financing 224 expenses 200 199 * ILS 33 million NOI from Ra’anana’s Infinity Park 170 included (compared to I
Slide 21: Financial Data Per Share
21 Agorot per share ]NIS 0.01[ FINANCIAL 167 156-161 160 152 DATA 140 140 141 130 Per Share 129 119 120 Equity/Total assets 98 103 100% 100 85 89 89 82 84* 80 80 72 74 68 Per share adjusted FFO 64 (managment approach) 59 60 56 50% Per share dividend 48 50 52 47 50% 51% 49% 49% 49% 49% 49% 49% 48% 47
Slide 22: Financial Resilience
22 FINANCIAL Equity to total assets - 49% (IFRS) Signed credit facilities non utilized as of Report’s issue date (Solo) approx. ILS 750 million RESILIENCE Weighted average cost of long-term debt - 1.9% CPI linked Bond Series rating il/AA Average weighted Duration - 4.1 years Issuer Credit rating Cur
Slide 23: Debt Maturity Profile
ILS millions 600 23 DEBT MATURITY 550 PROFILE 500 450 400 350 300 Series D bonds Series E bonds 250 Series F bonds Series G bonds Other 200 Associates’ debt* 150 100 * Company's share. 2024-2025 50 includes short-term revolving bank facility. 0 - Based on the Company’s expanded consolidated statemen
Slide 24: Cap Rate of Properties vs. Weighted Average Cost of Debt
24 CAP RATE OF PROPERTIES 9% VS. WEIGHTED 8% 8% 8% 7.85% 7.52% 7.52% 7.46% 7.29% AVERAGE COST 7% 6.95% 6.64% 6.73% 6.59% 6.37% OF DEBT 6% 4.2% 5% 4% 4.5% 3.82% 2.8% 3% 3.46% 3.33% 2.87% 2% 2.57% Weighted cap rate deduced from 2.15% 2.11% 1.97% 1.9% Company’s income-producing 1.67% 1.90% properties.
Slide 25: West Design Rishon LeZion Before Renovation
25 WEST BEFORE DESIGN Rishon LeZion RENOVATION Example
Slide 26: West Design Rishon LeZion After Renovation
26 WEST AFTER DESIGN Rishon LeZion RENOVATION Example
Slide 27: West Design Rishon LeZion Renovation Example
27 WEST DESIGN Rishon LeZion Property NOI* YIELD* RENOVATION PURCHASE COST 95 8 8.5% )12.2024( Initial On purchase price Example RENOVATION COST 53 TOTAL COST 148 11.5% 17 On total cost In ILS millions (for 100%) Up to date REIT1’s share 65% FAIR VALUE 264 6.4% )31.12.2023( On fair value REVALUATION
Slide 28: Thank You
THANK YOU For additional information: Nirit Bregman, CPA, Head of IR +972-3-7686700 | niritb@reit1.co.il