Azrieli Group Ltd. · TASE:AZRG
Azrieli — Q1 2025 Earnings Presentation
45 slides from Azrieli's earnings presentation, May 2025
Slide 1: Capital Market Presentation
Capital Market Presentation 31.3.2025 | 2025 מרץ,מצגת משקיעים
Slide 2: Disclaimer
DISCLAIMER The information included in this presentation is merely a summary and does not exhaust all of the Slide 16 – The Company’s estimations regarding the projected increase in the results of the data information about the Company and its operations, nor is it a substitute for inspection of the
Slide 3: Business Card
Azrieli Group / Business Card ~79% Israel’s largest real Traded on the capital of the value of the investment and estate company market since 2010 under-construction income-producing real estate (on a consolidated basis) is Free float: 30.1% attributed to real estate in Israel The Company’s stock is
Slide 4: Property Portfolio
Azrieli Group / Property Portfolio(1) Malls and retail centers Offices 23 malls and retail centers 379,000 m2 Senior Homes Rental Housing 17 office and other spaces – Israel 655,000 m2 8 office properties – overseas 245,000 m2 4 senior homes 115,000 m2 1,141 Apts. 3 rental housing properties 34,000
Slide 5: Properties Breakdown, NIS in millions
Azrieli Group / Properties Breakdown, NIS in millions(1) Hotels 1% 29% Real estate in Israel – offices and other spaces 593 17,433 Rental Housing 3% 27% in Israel Real estate in Israel 2,074 – Retail centers and Malls 16,211 Income- producing 3% 1,893 17% properties in the U.S. Data Centers 10,207 C
Slide 6: Q1 2025 Highlights
Azrieli Group / Q1 2025 Highlights Financial highlights • NOI in Q1/2025 totaled NIS ~646 million, an increase of ~21% year-over-year. The increase is mainly due to increase in the rent in Data Centers, malls and offices. • Same Property NOI – up ~6% year-over-year. • FFO(1) (Management’s method) to
Slide 7: Operating Segments
Operating Segments Investor Presentation, March 2025 | 7
Slide 8: Malls and Retail Centers
Azrieli Group / Malls and Retail Centers INNOVATION & GLA NOI in Q1/2025 UPGRADES ~379,000 m2 (1) NIS 252 million compared with NIS 240M in Q1/2024 Azrieli App Azrieli Gift Card Average Book value occupancy rate NIS ~16.2 99%(2) billion Betterment and upgrade of malls and retail centers (1) Figures
Slide 9: Store Sales and Occupancy Cost Ratio
Store Sales/ and Occupancy Cost Ratio Total Change in Azrieli Group Mall Store Sales January – January – (1%) March 2024 March 2025 % Occupancy Cost Ratio Occupancy Cost Ratio 12.2% 12.3% 11.9% 12.0% 12.0% 11.9% 11.9% 11.3% 11.5% 11.2% 11.2% 11.5% 10.9% 11.1% 10.6% 9.5% 2010 2011 2012 2013 2014 2015
Slide 10: Offices
Azrieli Group / Offices INNOVATION & GLA NOI in Q1/2025 UPGRADES ~655,000 m2(1) NIS 223 million compared with NIS 211M in Q1/2024 Community Technology Average occupancy rate Book value 98%(2) NIS ~ 17.4 billion Betterment and upgrade of office towers (1) Figures as of 31 March 2025. GLA figures refl
Slide 11: Customers / Offices
Customers / Offices Investor Presentation, March 2025 | 11
Slide 12: Global Data Center Operations – Green Mountain Global
Azrieli Group / Global Data Center Operations – Green Mountain Global NOI in Q1/2025 NIS 116 million compared with NIS 32 million in Q1/2024 GMG - Contracted NOI/ MW NIS 511M / 152MW Hamar (1) Rjukan Oslo (€ 127M) Stavanger Renewable Power London 100% Frankfurt Electricity costs PUE LOW LOW Award wi
Slide 13: Data Center Operations – Timeline
Azrieli Group / Data Center Operations – Timeline 2017 2019 2019 2021 2023 2025 January April October December Decision to Acquisition of Acquisition Acquisition Signing of JV Sale of As of 31 enter the Data 19.5% of of 100% of a agreement with Compass March 2025, Center space Compass Green Data Cen
Slide 14: Significant growth since the acquisition of Green Mountain
Azrieli Group / Global Data Center Operations – Green Mountain Global Significant growth since the acquisition of Green Mountain (July 2021) Acquisition – July 2021 March 2025 Change Active countries 1 3 x3 Number of sites 3 6(1) x2 MW (2) 24 152 x6 NOI (NIS in millions)(2) 84 511(3) x6 (1) Includin
Slide 15: Global Data Center Operations – Green Mountain Global
Azrieli Group / Global Data Center Operations – Green Mountain Global SVG1 – Rennesøy RJU1 – Rjukan OSL1 – Enebakk OSL2 – Hamar LON1 – East FRA1 – Mainz A former NATO ammunition Colocation data center Hyperscale and East London location, storage facility located at the nexus of wholesale data center
Slide 16: Data Center Capacity and NOI Development Based on Bookings
Azrieli Group / Global Data Center Operations – Green Mountain Global Annual Active Operating Capacity Development based on Bookings (1) in MW excluding potential additional contracts 100% CAPACITY 152 152 152 (MW) 7 2 145 150 152 Billed BBNB Q1 '25 Q4 '25 Q4 '26 Annual NOI Capacity based on Booking
Slide 17: Hamar Project – OSL2
Azrieli Group / Hamar Project – OSL2 Expansion Option #2 Building A | 30MW Expansion Option #1 Building B | 30MW Building C | 30MW Investor Presentation, March 2025 | 17
Slide 18: Palace Senior Housing Chain
Azrieli Group / Palace Senior Housing Chain Book value Operating Homes NOI in Q1/2025 NIS ~3.6 billion ~115,000 m2 (1) NIS 24 million Above-ground space including Average occupancy rate v. NIS 21 million in Q1/2024 1,141 Apts. 99%(2) Palace Tel Aviv 231 Apts. + 4 Medical Units Palace Rishon LeZion P
Slide 19: Properties Under Construction
Properties Under Construction Investor Presentation, March 2025 | 19
Slide 20: Development Pipeline
Azrieli Group / Development Pipeline Herzliya Glil Yam Ramat Hasharon SolarEdge ~19,630 m2 ~43,000 m2 Tel Aviv Expansion of Azrieli Mall and the Spiral Tower Petah Tikva Land for development ~150,000 m2 (3) ~53,000 m2 (1) Tel Aviv Azrieli Town, Building E ~21,000 m2 (4) Jerusalem Mount Zion Hotel Ho
Slide 21: Development Projects / Growth Driver
Development Projects / Growth Driver Use Estimated Completion Estimated Construction Cost, Property Name Location GLA (2) Including Land (NIS in millions)(1) Date Palace Rishon LeZion Rishon LeZion 37,300 2025 540-560 Modi’in, Lot 10 Modi’in 37,000 2026 570-580 Short & Medium SolarEdge Campus Ramat
Slide 22: Expected Contribution to NOI and FFO
Development Projects/ Expected Contribution* to NOI and FFO (NIS in millions) Annualized actual NOI in Q1/2025 2,584 NOI (NIS millions) 2,983 Additional NOI from DC segment based on signed contracts** 47 2,584 Addition due to the initial occupancy of properties during the period 11 15% Additional NO
Slide 23: The CBD of Tel Aviv
Azrieli Group / The CBD of Tel Aviv EXPANSION OF AZRIELI AZRIELI MALL & SARONA SPIRAL TOWER AZRIELI TOWN AZRIELI RESIDENCES CENTER & RETAIL AZRIELI AZRIELI TOWN TOWN BUILDING E Under construction Income-producing Investor Presentation, March 2025 | 23
Slide 24: Expansion of Azrieli Mall & the Spiral Tower, Tel Aviv
Development Projects / Expansion of Azrieli Mall & the Spiral Tower, Tel Aviv Land area GLA Cost of land ~ 8,400 m2 150,000 m2 NIS ~374 million Estimated completion date Uses Estimated construction cost, including land 2028 NIS 2.7-2.9 Hotel Retail Offices Housing billion Progress update In June 202
Slide 25: Expansion of Azrieli Mall & the Spiral Tower, Tel Aviv
Development Projects / Expansion of Azrieli Mall & the Spiral Tower, Tel Aviv Investor Presentation, March 2025 | 25
Slide 26: Lot 10 – Modi'in
Development Projects / LOT 10 – Modi'in 8,100m2 ±37,000m2 Clalit Medical Center of offices & retail(1) (included in the office and retail areas) Connection to A bustling center with the mall and the commercial and retail buildings and movie existing complex theaters (1) The Company promoted a plan t
Slide 27: Glil Yam – Rental Housing
Development Projects / Glil Yam – Rental Housing Estimated cost of Highway 2 ~147 Apt. Land area construction including land and other retail space ~ 5,200 m2 NIS 380-400 over two adjacent lots million 2 Lots Land price per Apt. Uses Estimated completion date Highway 20 NIS ~710 thousand Retail Hous
Slide 28: Mount Zion Hotel – Jerusalem
Azrieli Group / Mount Zion Hotel – Jerusalem Planned built-up area according to approved Land area Acquisition cost ⁓13,000 m2 NIS ~275 million zoning plan 34,000 m2 (1) up to 350 rooms Estimated construction cost The Group intends to remodel Estimated completion date the hotel to NIS 675-705 2027 m
Slide 29: Sde Dov Senior Home
Development Projects / Sde Dov Senior Home Winning the Sde Dov tender Land area On 19 February 2025, the Company ~4,500 m2 won ILA’s tender for the acquisition of leasehold rights to a lot in Tel Aviv, for the construction of a senior home project and retails areas. Einstein Estimated cost for the p
Slide 30: Existing Properties / Expansion and Betterment
Existing Properties / Expansion and Betterment The following projects are undergoing betterment and various statutory proceedings: Projects in Timeframe for Completion Name of Property Location Status Gross Area Added of Statutory Proceeding the property Expansion of retail and office space, and Azr
Slide 31: ESG / Environment
Azrieli ESG / Environment 5 properties are LEED certified Azrieli Group’s flagship project The world’s first Supertall building with a façade entirely made of recycled aluminum 14 properties 350 meters tall, 91 floors are LEED O&M certified The world’s largest project to use recycled aluminum 19 pro
Slide 32: Sarona Tower Achieves LEED v5 O+M Platinum Certification
Azrieli ESG / Sarona Tower Achieves LEED v5 O+M Platinum Certification International project • One of only 11 projects worldwide certified to this standard • The first project in the Middle East and North Africa (MENA) to achieve this certification Carbon emission reduction • Reduction of greenhouse
Slide 33: ESG / Society
Azrieli ESG / Society Swords of Iron Community Partnership Following the Swords of Iron war, and as part of Azrieli • Projects for the community focusing on core business Group’s ESG strategy, it has rallied to support the themes such as: establishing community gardens on our Israeli people and has
Slide 34: ESG / Corporate Governance
Azrieli ESG / Corporate Governance Gender diversity on the Board • 5 out of the 10 members of Azrieli’s board are women, constituting 50% • The board’s chair is a woman • We champion gender equality throughout the Group Code of Ethics • Is based on our values and vision and serves as a compass for a
Slide 35: Financials
Financials Investor Presentation, March 2025 | 35
Slide 36: Continuous NOI Growth
Continuous NOI Growth The NOI compared with previous years and the same quarter last year NOI (NIS in millions) NOI (NIS in millions) (1( 9% 2,302 21% 646 19 7 2,113 230 15 1,953 154 87 116 4 72 92 533 133 4 60 110 32 24 1,611 1,590 111 21 24 1,523 10 25 37 53 1,385 37 139 48 865 1,301 149 122 1,238
Slide 37: Continuous FFO Growth
Continuous FFO Growth The FFO (Management’s method)(2) compared with previous years and the same quarter last year FFO (Management’s method) attributed to the real estate business(1)(2) (NIS in millions) 15% 1,709 119 15% (3( 1,481 (3( 452 1,378 103 1,318 (3( 394 17 1,313 1,278 85 153 166 10 165 1,0
Slide 38: Dividend Distribution / Consistent and Growing
Dividend Distribution / Consistent and Growing Dividend distribution of NIS 800 million for 2024 1,000 )1( 1,000 8.25 8.50 900 800 800 7.50 700 700 650 6.50 600 600 560 6.60 520 500 480 5.77 5.50 400 5.36 400 4.50 320 300 4.95 265 280 4.29 4.62 300 240 240 3.96 3.50 200 3.30 2.50 100 2.64 2.47 2.31
Slide 39: Leverage, Duration and Cost of Debt
Leverage, Duration/and Cost of Debt Extension of average duration of debt (2) Financial Strength(1) 6.4 6.0 5.5 6.1 5.8 • Low leverage ratio – net financial debt to assets ratio: ~ 33% 5.3 5.3 4.5 4.4 40% • Equity to assets ratio : ~ 4.1 3.3 • Cash and cash equivalents: NIS ~5.26 billion 3.1 2.7 2.7
Slide 40: Payment Schedule (principal only)
Payment Schedule (principal only) On a consolidated basis, as of 31 March 2025 10,854 ■ Lending entities for overseas operations ■ Bonds ■ Long-term banks and institutionals ■ CPs and short-term loans 10,573 3,529 91 2,967 2,426 26 2,222 1,786 717 1,847 1,995 1,476 58 737 1,436 91 61 1,697 1,652 1,8
Slide 41: Summary of Financial Statement Results
Summary of Financial Statement Results (NIS in millions) Consolidated Consolidated Consolidated Q1 2025 Q1 2024 2024 Revenues from rent, maintenance, management fees and sales 938 749 3,281 NOI 646 533 2,302 Same-property NOI 567 534 - FFO (Management’s method) attributed to the real estate business
Slide 42: Summary of Balance Sheet Figures
Summary of Balance Sheet Figures (NIS in millions) Consolidated Consolidated 31 March 2025 31 December 2024 Cash, securities and deposits 5,263 4,634 Gross financial debt 27,276 25,894 Net financial debt (1) 20,271 19,744 Net financial debt to assets 33% 34% Financial assets (mainly Bank Leumi share
Slide 43: Average Cap Rate and FFO / Income-Producing Real Estate Business
Average Cap Rate and FFO / Income-Producing Real Estate Business FFO(2) (management's method) for Q1/2025 Weighted average cap rate – 6.96% attributed to the real estate business – NIS 452 million NIS in millions NIS in millions Q1 2025 Q1 2024 Total investment property, as of NOI 646 533 49,671 31
Slide 44: Recap / Leadership, Innovation and Strength
Recap / Leadership, Innovation and Strength Continued growth in the key Exceptional financial parameters of the core resilience and strength business (NOI, FFO) Consistent high The Company’s operations occupancy rates over are predominantly in Israel time Significant Growth Drivers: • Organic growth
Slide 45: Thank You!
Thank You! Investor Presentation, March 2025 | 45