Slide 1: Gazit-Globe Conference Call Presentation Q2 2012 Financial Results
August 21, 2012 | Gazit-Globe Conference Call Presentation | Q2 2012 Financial Results A GLOBAL REAL ESTATE PLATFORM LOCATION LOCATION LOCATION
Slide 2: Disclaimer
Disclaimer 2 This presentation may include forward-looking statements, including forecasts, evaluations, estimates and other information relating to future events and issues. Forward-looking statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other
Slide 3: Roni Soffer, President
Roni Soffer President 3 LOCATION LOCATION LOCATION
Slide 4: A Global Real Estate Platform
Listed on the Tel-Aviv Stock Exchange (TASE: GLOB) & New York Stock Exchange (NYSE: GZT) Focused on supermarket-anchored shopping centers NIS 72.4 billion in assets under management, over 600 properties Approximately NIS 6.8 billion in annual rent, more than NIS 18 million per day 6.7 million sqm of
Slide 5: Financial Highlights
3 months ended June 30 3 months ended June 30 3 months ended June 30 % change (2011 (* 2012 (NIS millions) 11% 1,146 1,268 Property rental income 11% 780 865 NOI 45% 95 138 FFO 38% 0.61 0.84 FFO per diluted share (NIS) - 154.7 165.1 Number of shares fully diluted (millions) - 281 288 Net income attr
Slide 6: Consistent Growth in Rental Revenues, NOI and FFO
+11% Consistent Growth Rental Revenues (NIS millions) +11% NOI (NIS millions) Increase in FFO and FFO Per Share Strong Growth in Operational Parameters (*) FFO Per Share (NIS) FFO (NIS millions) 6 +38% +45% LOCATION LOCATION LOCATION (*) Retroactively adjusted due to the implementation of new IFRS s
Slide 7: Resilient Assets with Stable Occupancy
(*) Excluding foreign exchange fluctuation 7 Strong tenants mix - Supermarkets, Necessity-Driven Retailers and Other High Quality Tenants 1-6/2012 Same Property NOI Growth(*) Resilient Assets with Stable Occupancy Organic Growth - Global Diversification 7 LOCATION LOCATION LOCATION
Slide 8: External Growth - Investment Activity
4-6/2012 External Growth - Investment Activity, NIS 2.85 billion (NIS million) Total Investments Total Investments (NIS million) 4-6/2012 1-6/2012 New properties acquisition 693 989 Development & redevelopment 1,143 1,862 Total 1,836 2,851 Dispositions and recycle of capital 554 937 8 1-6/2012 LOCAT
Slide 9: Consistent Growth in Value Per Share
Consistent Growth in Value Per Share EPRA NAV (*) and Equity Per Share 9 From 2010 to Q2/2012 the dividends paid by the Company totaled NIS 585 million, NIS 3.8 per share EPRA NAV Per Share CAGR +28.5% Equity Per Share CAGR +15.3% LOCATION LOCATION LOCATION (*) Retroactively adjusted due to the impl
Slide 10: Gadi Cunia, Senior Executive VP & Chief Financial Officer
Gadi Cunia Senior Executive VP & Chief Financial Officer 10 LOCATION LOCATION LOCATION
Slide 11: Q2/2012 Highlights
3 months ended June 30 3 months ended June 30 3 months ended June 30 % change 2011 (*) 2012 (in NIS million except per share data) 11% 1,146 1,268 Property rental income 11% 780 865 NOI - 68.1% 68.2% NOI margin 45% 95 138 FFO 38% 0.61 0.84 FFO per diluted share (NIS) - 543 718 Fair value gain on inv
Slide 12: H1/2012 Highlights
6 months ended June 30 6 months ended June 30 6 months ended June 30 % change 2011 * 2012 (in NIS million except per share data) 10% 2,289 2,527 Property rental income 11% 1,534 1,705 NOI - 67.0% 67.5% NOI margin 48% 184 272 FFO 39% 1.19 1.65 FFO per diluted share (NIS) - 614 1,031 Fair value gain o
Slide 13: NOI Diversification Across Leading Economies
NOI Diversification Across Leading Economies (*) Based on proportional consolidated NOI for the three months ended June 30, 2012 NOI Diversification (*) 13 LOCATION LOCATION LOCATION
Slide 14: Foreign Exchange Adjustments
Foreign Exchange Adjustments % change excluding FX fluctuation 3 months ended June 30 3 months ended June 30 % change excluding FX fluctuation 2011 (*) 2012 % change excluding FX fluctuation (NIS million ) (NIS million ) 5% 1,146 1,203 Property rental income 5% 780 820 NOI 12% 459 516 Proportional c
Slide 15: Q2/2012 Fair Value of Investment Property
Change in fair value pre-tax Consolidated (NIS million) Change in fair value pre-tax Consolidated (NIS million) Q2/2011 (*) Q2/2012 578 412 (17) 245 (4) 33 (23) (1) 9 29 543 718 15 Q2/2012 Fair Value of Investment Property LOCATION LOCATION LOCATION (*) Retroactively adjusted due to the implementati
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights As of June 30 As of June 30 2011 (*) 2012 (in NIS million except per share data) 57,459 68,465 Total Assets 48,222 57,779 Investment Properties 35,371 40,184 Interest Bearing Liabilities 17,095 21,030 Total Equity 6,253 7,906 Shareholder's Equity 40.5 48.0 Shareholder's Equi
Slide 17: Currency Diversification Lowers FX Risk
Currency Diversification Lowers FX Risk Assets Currency Matching Policy 17 Shareholders' Equity LOCATION LOCATION LOCATION
Slide 18: Liquidity and Debt Update
The Group has liquid assets available and undrawn lines of credit in the amount of NIS 8.5 billion (of which approximately NIS 2.1 billion is on the Company level) As of June 30, 2012, net debt to total assets (LTV) was 57.5%, as compared to 60.6% as of June 30, 2011 and 58.0% as of December 31, 201
Slide 19: Consistent & Growing Dividends for Over a Decade
Dividend Per Share (NIS) CAGR 11.5% Consistent & Growing Dividends for Over a Decade 19 A quarterly dividend of NIS 0.40 per share will be paid on October 11, 2012. The dividend policy for 2012 is a minimum quarterly dividend payment of NIS 0.40 per share (NIS 1.60 per share annualized) LOCATION LOC
Slide 20: Good Things Happen When You Own Good Real Estate
Good Things Happen When You Own Good Real Estate