Gav-yam Lands Corp. Ltd · TASE:GVYM
Gav-yam Lands — Investor Presentation (December 2023)
65 slides from Gav-yam Lands's investor presentation, Dec 31, 2023
Slide 1: Presentation for the Capital Market – Annual Summary
PRESENTATION FOR THE CAPITAL MARKET ANNUAL SUMMARY 1
Slide 2: About Gav-Yam (Jan-Dec 2023)
Main activity About Gav-Yam (Jan-dec 2023) 1.2 million m2 430,000 m2 1.6 million m2 450,000 m2 available building income-generating ncome- areas areas under development incom income-generating + rights including areas development properties under development ILS 682 million ILS 348 million ILS 1,030
Slide 3: About Gav Yam (as of 31 Dec 2023)
Main activity About Gav Yam (as of 31 dec 2023) ILS 657 NOI million 8% increase in same 400 customers 98% occupancy rate property NOI ILS 3.2 billion backlog acklog rrevenue 4.8 years avg. duration of lease ILS 1.0 billion backlog revenue revenu from leases 7.9 years avg. duration of from leases wit
Slide 4: About Gav Yam – financial highlights
Main activity About Gav Yam (as of 31 dec 2023) 1.5% weighted avg effective interest, ILS 401 million FFO for shareholders 55.6% leverage ILS 4.2 billion equity for shareholders index-linked per management Bond rating ILS 1,006 million liquid assets ILS 590 million cashflow from il AA ILS 499 millio
Slide 5: Main activity Q4 2023
Main activity Q4 2023 With a war going on and the uncertainty regarding its duration, Gav-Yam proceeds via routine business activity with a long-term view, continuing development, improving company assets and managing cashflow. Gav-Yam Hebrew Campus – Executed an agreement with General Microwave of
Slide 6: Real increase in rent Q4 2023
Main activity Real increase in rent Q4 2023 4% real al incre increase 22 lease agreements for total area 9% tenant replacement of 46,000 m2 aboveground, generating ILS 39 million for the year, real increase, in excess of index increase (and offsetting TI), of 12%. 15% real al increa increase 4% real
Slide 7: Real increase in rent 2023
Main activity Real increase in rent 2023 12% real al increa increase 121 lease agreements for total area 12% tenant replacement of 175,000 m2 aboveground, generating ILS 137 million for the year, real increase, in excess of index increase (and offsetting TI), of 10%. 13% real al increa increase 4% r
Slide 8: Development as of Dec 2023
Main activity Development as of 31 Dec 2023 10 development projects, total area of 430,000 m2, total investment of ILS 4.6 billion (ILS 3.5 billion without land), which generate additional annual income representing ILS 348 million. Expected return from these projects is 7.6%. To date the company ha
Slide 9: Projects completed 2023
Main activity Projects completed 2023 – 110 m2 total 100% m 100% m 100% m arketed arkete arketed and re d alized Gav-Yam Haifa Bay #4 Rav Bariach #1 Matam East #2 20,000 m2 41,000 m2 (28,000 m2 company share) 48,000 m2 Annual revenue ILS 11 million Annual revenue ILS 12 million Annual revenue ILS 33
Slide 10: Jan-Dec 2023 NOI
Main activity Jan-Dec 2023 NOI NOI 1-12.2023 1-12.2022 Increase % change 25% 685-705 NOI 657 555 102 18% 657 630-645 555 *figures in ILS millions Projected NOI for 2024 ILS 685-705 million 2022 Forecast 2023 Forecast 2023 2024 10
Slide 11: Jan-Dec 2023 FFO
Main activity Jan-Dec 2023 FFO FFO PER MANAGEMENT APPROACH 1-12.2023 1-12.2022 Increase % change FFO PER MANAGEMENT APPROACH 401 313 88 28% 27% 390-405 FFO 401 350-360 PER ISRAEL SECURITIES 274 144 130 90% AUTHORITY APPROACH 313 *figures in ILS millions Projected NOI for 2024 ILS 390-405 million 202
Slide 12: Purchases and realizations
Purchases and realizations Gav-Yam Gederot – land, total area 39 dunams, on which there are two buildings with total area of 18,000 m2 for consideration totaling ILS 194 million, reflecting net profit after tax ILS 18 million. Gav-Yam Ashkelon Rav Bariach – total consideration ILS 250 million, retur
Slide 13: Income-generating value (ILS 10,982 million)
Income-generating value (ILS 10,982 milion) 6.6% weighted rate of return 1.2 million m2 21% ILS 2,341 million * Logistics and industry weighted average 6.0% rate of return ILS 8,135 million* 281,000 m2 6.6% weighted average rate of return 819,000 m2 ILS 506 million 8.1% weighted average 5% 53,000 m2
Slide 14: The Company's Customers
The Company’s Customers KRATOS GENERAL MICROWAVE Microwave Electronics Division 14
Slide 15: Company properties map
16 HAIFA AFULA TIRAT HACARMEL cities CAESAREA 19 RAANANA HERZLIYA TEL AVIV HOLON BEER YAAKOV LOD HIGH-TECH PARKS NESS ZIONA MODI'IN REHOVOT logistics and industry JERUSALEM YAVNE 98% occupancy cupancy rrate BEER SHEVA 15
Slide 16: Substantial properties - Tel Aviv - ToHa
Substantial properties - Tel Aviv - ToHa 89,000 m2 income-generating properties, 205,000 m2 under development, total 294,000 m2 * Company’s share 50.1% 16
Slide 17: Substantial properties - Gav-Yam Herzliya
Substantial properties - Gav-Yam Herzliya 250,000 m2 income-generating properties, 60,000 m2 under development, 35,000 m2 planned, total 345,000 m2 * החושלים * data includes all company properties in Herzliya 17
Slide 18: Substantial properties - Gav-Yam Herzliya (cont.)
Substantial properties - Gav-Yam Herzliya (cont.) 250,000 m2 income-generating properties, 60,000 m2 under development, 35,000 m2 planned, total 345,000 m2 * * data includes all company properties in Herzliya 18
Slide 19: Substantial properties - Matam Park
Substantial properties - Matam Park 377,000 m2 income-generating properties, 63,000 m2 under development, total 440,000 m2 * * Company’s share 50.1% 19
Slide 20: Sustainability
Sustainability Matam East ToHa Gav-Yam Negev #5 Gav-Yam Rehovot #5 Energy centers Green building PV installations Natural gas Water recycling Electric charging Renewable energy * The images are for illustration purposes only 20
Slide 21: PV installations
PV installations Cost of Number of Power supply Annual revenue System status construction Annual return systems (MW) (ILS millions) (ILS millions) Generating 1.24 40 6.6 33.2 4.8 15% Under Development 9 1.2 5.3 0.7 13% Dec ’24 forecast 49 7.8 38.5 5.5 15% Further potential depends on Israel Electric
Slide 22: Financial Data
F I NAN CI AL FINANCIAL D ATA DATA 22
Slide 23: Financial results for 2023
Financial results for 2023 (ILS millions) 1,220 936 757 649 657 555 585 499 544 436 401 313 274 144 REVENUE NOI SAME PROPERTY FAIR VALUE NET FFO FOR FFO FOR FROM LEASED NOI INCREASE OF SHAREHOLDER SHAREHOLDERS SHAREHOLDERS PROPERTIES AND INVESTMENT REAL PROFIT PER PER ISRAEL MANAGEMENT FEES ESTATE M
Slide 24: Growth in NOI
Growth in NOI (ILS millions) 103% 685-705 657 i l l i on ) 555 (ILS 334 m 490 516 522 430 441 406 377 333 349 323 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 תחזית 24
Slide 25: Growth in FFO for shareholders per management approach
Growth in FFO for shareholders per management Approach (ILS millions) 197% 401 ) 313 390-405 l i on LS 26 6 mil 253 (I 240 231 199 187 170 159 135 132 132 * FFO per Israel Securities Authority approach see p. 12 The change in FFO for shareholders in the forecast for 2024 compared to 2023 is due to a
Slide 26: Shareholder equity
Shareholder equity (ILS millions) 4,205 187% 3,611 3,976 i l l i o n ) , 741 m (ILS 2 2,710 2,774 2,347 2,444 1,965 1,748 1,505 1,591 1,464 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2022 31.12.2023 26
Slide 27: Distribution of real estate value for investment
Distribution of real estate value for investment (ILS 13,988 million) As of 31 Dec 2023 17% 2,398 real estate under construction* 79% 4% 10,982 income-generating 608 0 lands real estate* .* כולל רב בריח וראש העין 27
Slide 28: Financial strength
Financial strength Change in the Weighted discount rate compared to As of 31 Dec 2023 change in the company's Weighted interest rate 7.45% Weighted discount rate 7.38% Weighted avg. effective interest, index linked Marginal cost of capital 3.14% per bond series 10 6.95% avg. duration 5.8 years as of
Slide 29: Gross financial debt (ILS 7,911 million)
Gross financial debt (ILS 7,911 million) As of 31 Dec 2023 1.5% weighted effective interest, index-linked 35% fixed ILS 2,764 65% 3.4 weighted duration du index linked 5,147 in years 29
Slide 30: Debt principal repayment schedule
Debt principal repayment schedule (ILS millions) As of 31 Dec 2023 2,012 1,731 1,383 1,206 709 435 435 2024 2025 2026 2027 2028 2029 2030-2035 30
Slide 31: Financial data
Financial data (ILS millions) Consolidated 1-12/2023 1-12/2022 Change in % NOI 657 555 18 Same Property NOI 585 544 8 Increase in fair value of investment real estate 436 1,220 (64) Cashflows from current activity 590 462 28 Net profit for shareholders* 499 936 (47) FFO for shareholders per manageme
Slide 32: Financial data
Financial data (ILS millions) Consolidated 31/12/2023 31/12/2022 Liquid Assets 1,006 1,616 Fair value of investment property of which: 13,988 12,353 Real estate under construction 2,398 1,908 Land 608 608 Income-generating real estate 10,982 9,837 Other properties 433 521 Total assets 15,427 14,490
Slide 33: Financial data
Financial data (ILS millions) Consolidated 31/12/2023 31/12/2022 Financial debt, gross 7,911 7,494 Other liabilities 334 284 Reserve for deferred taxes 1,666 1,569 Equity attributed to shareholders 4,205 3,976 Non-controlling rights * 1,311 1,167 Total equity and liabilities 15,427 14,490 * Standalo
Slide 34: Financial data
Financial data (ILS millions) 31/12/2023 31/12/2022 Change in % Investment real estate 13,988 12,353 13 Net financial debt 6,905 5,878 17 Leverage rate 55.6% 53.3% 2 Shareholder equity 4,205 3,976 6 34
Slide 35: Financial data - Standalone extended
Financial data (ILS millions) Standalone extended* 1-12/2023 1-12/2022 Change in % NOI 533 457 17 Same Property NOI 484 448 8 Increase in fair value of investment real estate 303 994 (69) Net financing expenses 203 264 (23) Tax expenses 103 216 (52) Net profit 499 935 (47) FFO to shareholders per ma
Slide 36: Financial data - Standalone extended
Financial data (ILS millions) Standalone extended* 31/12/2023 31/12/2022 Liquid assets 1,006 1,616 Fair value of investment property of which: 13,988 12,353 Real estate under construction 2,398 1,908 Land 608 608 Income-generating real estate 10,982 9,837 Other properties 433 521 Total assets 15,427
Slide 37: Financial data - Standalone extended
Financial data (ILS millions) Standalone extended* 31/12/2023 31/12/2022 Financial debt, gross 7,404 7,036 Other liabilities 99 46 Reserve for deferred taxes 1,352 1,285 Equity 4,205 3,976 Total capital and liabilities 13,060 12,343 *Standalone extended = share attributed to shareholders (Matam 50.1
Slide 38: Projects in Development
P ROJE CT S IIN PROJECTS N D E V E LO P M E N T DEVELOPMENT 38
Slide 39: Projects in development
Projects in development Total area projects in development 430,000 - m2 consolidated Gav-Yam Haifa Bay #5 8,000 m2 Matam East Towers #3 100% marketed 43,000 m2 HAIFA Gav-Yam Park Raanana 51,000 m2 TOHA 2 35% marketed 103,000 m2 33% marketed executed LOI Gav-Yam O2 RAANANA 60,000 m2 100% marketed HER
Slide 40: Projects in development
Projects in development 51% of the total aboveground areas of the projects under construction have been marketed compared to 48% in previous quarter * (ILS millions) Annual Rate of Revenue for Construction Above- Parking Holding Other costs as representative marketed marketed Completion Consolidated
Slide 41: Projects in development
Projects in development 51% of the total aboveground areas of the projects under construction have been marketed compared to 48% in previous quarter * (ILS millions) Standalone Construction Annual Rate of Revenue for extended* Above- Other costs as of representative marketed marketed Completion Park
Slide 42: Raanana
RAANANA Area 72,600 m2 35% marketed (50,400 m2 company’s share) of which 40,000 m2 aboveground (28,000 m2 company’s share) Completion date Q1 2024 Total cost (company’s share) ILS 414 million NOI ILS 29 million Return 7.1% * The images are for illustration purposes only 42
Slide 43: Raanana Construction progress
RAANANA Construction progress JANUARY 2024 43
Slide 44: Holon
HOLON 88% marketed to Building #3 Government Complex Area 44,000 m2 of which 22,000 m2 aboveground Completion date Q2 2024 Total cost ILS 349 million NOI ILS 21 million Return 5.9% * The images are for illustration purposes only 44
Slide 45: Holon Construction progress
HOLON Construction progress JANUARY 2024 45
Slide 46: Gav-Yam Hebrew Campus
Area 89,000 m2 (59,000 m2 company’s share) of which 52% marketed 57,000 m2 aboveground KRATOS GENERAL MICROWAVE (38,000 m2 company’s share) Microwave Electronics Division Completion date Building #1 Building #2 Q3 2024 Total cost (company’s share) ILS 692 million NOI ILS 51 million Return 7.4% * The
Slide 47: Construction progress
Construction progress Building #1 Building #2 JANUARY 2024 47
Slide 48: Haifa Bay 5
HAIFA BAY 5# fully marketed to Almog Building #5 Area 7,800 m2 Completion date Q4 2024 Total cost ILS 68 million NOI ILS 4.6 million Return 6.8% * The images are for illustration purposes only 48
Slide 49: Negev
NEGEV 21% marketed to international fund Area 15,000 m2 Completion date Q1 2025 Total cost ILS 111 million NOI ILS 9 million Return 8.1% Figures are 100% (Gav-Yam’s share 73.25%) * The images are for illustration purposes only 49
Slide 50: Rehovot
REHOVOT fully marketed to an international Building #5 high tech company Area 39,000 m2 (28,000 m2 company’s share) of which 24,000 m2 aboveground (17,000 m2 company’s share) Completion date Q1 2025 Total cost (company’s share) ILS 200 million NOI ILS 14 million Return 7.0% * The images are for illu
Slide 51: Herzliya O2
Area 60,000 m2 of which fully marketed to an international company 38,000 m2 aboveground Completion date Q4 2025 Total cost ILS 667 million NOI ILS 43 million Return 6.4% * The images are for illustration purposes only 51
Slide 52: Construction progress
Construction progress JANUARY 2024 52
Slide 53: Matam Towers East #3
MATAM East #3 MATAM Towers East #3 Area 42,500 m2 of which 29,500 m2 aboveground Completion date Q2 2026 Total cost ILS 337 million NOI ILS 31 million Return 9.3% Figures are 100% (Gav Yam’s share 50.1%) * The images are for illustration purposes only 53
Slide 54: ToHa 2
33% executed MOU to international tech company Area 205,000 m2 of which 160,000 m2 aboveground Completion date Q4 2026 Total cost ILS 3.3 billion NOI ILS 280 million Return 8.5% Figures are 100% (Gav Yam’s share 50%) * The images are for illustration purposes only 54
Slide 55: Construction progress
Construction progress 20 JANUARY 2024 55
Slide 56: Urban Building Plans
URBAN U R BA N BUILDING B U IL DIN G PLANS P L ANS 56
Slide 57: Progress Residential Urban Building Plans
Progress Residential Urban Building Plans 6,200 UNITS Acre Kiryat Yam-Urban Renewal 1,000 units 2,500 units ACO KIRYAT YAM HAIFA Matam-Lot 8001 500 units HERZLIYA Herzliya North-Micro Units Old Rehovot 400 units 400 units HOLON REHOVOT Holon 1,100 units Beer Sheva-Rental Housing 250 units BEER SHEVA
Slide 58: Herzliya North Micro Units
HERZLIYA NORTH Micro Units Current status 55,000 m2 constructed (excluding O2) Planned status (addition) 400 residential units 45,000 m2 business and retail * The images are for illustration purposes only 58
Slide 59: Old Rehovot
OLD REHOVOT Current status 5,000 m2 Planned status (addition) 400 residential units 50,000 m2 business 10,000 m2 retail * The images are for illustration purposes only 59
Slide 60: Acre
ACRE Planned status (addition) About 1,000 residential units * The images are for illustration purposes only 60
Slide 61: Beer-Sheba Rental Housing
BEER-SHEBA Rental Housing Planned status (addition) 250 residential units 50,000 m2 business and retail * The images are for illustration purposes only 61
Slide 62: Holon
HOLON Lot 46 Lot 21 Lot 34 Current status 60,000 m2 constructed Planned status (addition) 1,100 Lot 27 residential units 500,000 m2 business 60,000 m2 industry and retail * The images are for illustration purposes only 62
Slide 63: Kiryat Yam Urban Renewal
KIRYAT YAM Urban Renewal Planned status (addition) 2,500 residential units 12,000 m2 industry and retail * The images are for illustration purposes only 63
Slide 64: Matam Lot 8001
MATAM Lot 8001 Planned status (addition) 500 residential units 55,000 m2 business and retail * The images are for illustration purposes only 64
Slide 65: Forward-looking information
Forward-looking information This presentation includes forecasts, assessments, estimates and other information relating to future events and matters, while there is uncertainty regarding the degree to which they might materialize and which are outside the company’s exclusive control (forward-looking
Gav-Yam Lands — Investor Presentation (December 2023) on 6ix