Slide 1: Q3 2018 Financial Results
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE Q 3 2018 FINANCIAL RESULTS INTERNACIONAL SHOPPING | S ÃO P AULO S HOPPING L IGHT | S ÃO P AULO G - C ITY | R ISHON L EZION G - TZAMERET | TEL AVIV G | KFAR SABA B RIDGE T OWER | N EW Y ORK BRICKELL GATEWAY I MIAMI I FL CEASAR' S BAY BAZAAR I BRO
Slide 2: Disclaimer
DISCLAIMER This presentation may include forward - looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues. Forward - looking statements may relate to, among other things, revenues, earnings, cash flows, capital
Slide 3: Third Quarter: Strong Operational Performance in All Territories
FFO per share in the period - Excluding Regency Total Occupancy 2.10 2.37 9M/2017 9M/2018 416 418 Q3/2017 Q3/2018 2.3 % Same Property NOI growth of 2.3 % in the period compared to the same period in 2017 in the quarter % 0.5 increased by proportionate) NOI ( 0.75 0.89 Q3/2017 Q3/2018 95.3 % 96.5 %
Slide 4: Recent acquisitions and development projects
ASSET LOCATION ACQUISITION DATE COST (LOCAL CURRENCY, MILLION) COST (MILLION ILS) POPULATION 3 MILES (5KM) AVG. HOUSEHOLD INCOME IN 3 MILES (5KM) RADIUS The Edge Brooklyn, NY 02 - 07 - 18 $47 173 1,250,000 $100K Neve Gan (land) Ramat Hasharon, Israel 23 - 07 - 18 ILS 30 30 486,197 NIS 151K Savyon
Slide 5: Recent Acquisitions Gazit Israel
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE RECENT ACQUSITIONS GAZIT ISRAEL DIZENGOFF SQUARE I TEL AVIV
Slide 6: Iconic Movie Theatre, Dizengoff Street, Tel Aviv
Transportation and Accessibility - Main public transportation access point in Tel Aviv - - Located by future light rail system - - Located 500 meters from the red and green lines Area Overview Iconic Movie Theatre Recent Purchases – ~ 102 M ILS on Dizengoff Street, Tel Aviv 3 rd quarter 2018 – Mai
Slide 7: Bank Leumi - Dizengoff Center
ISRAEL GAZIT ISRAEL Recent Purchases – ~ NIS 102 M on Dizengoff Street, Tel Aviv Bank Leumi – Dizengoff Center DIZENGOFF ST. CORNER KING GEORGE ST. I TEL AVIV ILLUSTRATION OF URBAN OUTFITTERS DIZENGOFF CENTER MALL I TEL AVIV I 2018 BANK LEUMI I DIZENGOFF CENTER I TEL AVIV LEUMI BANK I TWO FLOORS
Slide 8: Recent Purchases in Savyon
Recent Purchases – NIS 117 M in Savyon, upscale neighborhood in the center of Israel Income producing community shopping center with a GLA of 3,200 sqm standing on a land parcel of approx. 7.4 acre SHOPPING CENTER, OFFICES AND LAND - Gazit building ownership: 100 % - Purchase price (excluding tran
Slide 9: Gazit Globe: Europe highlights
GAZIT GLOBE ▪ Acquisition of Wars Sawa Junior, high street retail asset in the heart of Warsaw, Poland, with a gross leasable area of 26 , 000 sqm for a total amount of € 301 . 5 million (NIS 1 . 27 billion) . An annual footfall of over 60 million in and around the asset and connection to 24 bus l
Slide 10: Gazit Brasil Business Update
▪ Mais Shopping – Phase 1 of the expansion of the second floor, adding 8,750 sqm, was recently completed and government office will be opened by the end of November. Stage 2 will be occupied in February 2019 . Highest occupancy level in the mall ’ s history of 97.5 %. Gazit Brasil owns 8 assets
Slide 11: Strategy in Action - Focus on major cities
Stockholm, Helsinki, Oslo, Copenhagen, Tallinn and Tampere 25 assets HIGH POPULATION DENSITY LOW POPULATION DENSITY Strategy in Action - Focus on major cities in densely populated areas * The Company's relative share of the total value of the assets of the subsidiaries (excluding FCR). ** Includi
Slide 12: Financial Results Q3 2018
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE FINANCIAL RESULTS Q 3 2018 G CITY I RISHON LE ’ TZION 41 WINTER STREET I BOSTON I MA
Slide 13: Third Quarter 2018 Highlights: NOI
1,200 1,247 9M/2017 9M/2018 416 418 Q3/2017 Q3/2018 GEOGRAPHIC SPREAD THIRD QUARTER 2018 – HIGHLIGHTS Proportionate NOI increased by 2.9 % 2.3 % Same property NOI growth of 2.3 % compared to same period in 2017 Proportionate NOI increased by 0.5 % 3.1 % 0.8 % 0.9 % 9.9 % 2.3 % Canada - FC
Slide 14: NOI of Our Private Subsidiaries
THIRD QUARTER 2018 – HIGHLIGHTS NOI OF OUR PRIVATE SUBSIDIARIES GAZIT BRASIL – Increase of 56.8 % compared to same quarter in 2017 GAZIT ISRAEL – Increase of 2.6 % compared to same quarter in 2017 Million NIS Million BRL GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE 32 49 Q3/2017 Q3/2018 38
Slide 15: Increase in Occupancy Rate
THIRD QUARTER 2018 – HIGHLIGHTS INCREASE IN OCCUPANCY RATE OF 1.2 % TO 5 Geographic Spread Total 95.3 % 96.2 % 95.4 % 94.1 % 96.8 % 96.5 % 96.1 % 96.9 % 96.6 % 97.5 % Canada Northern Europe CEE Brazil Israel 30/09/2017 30/09/2018 95.3 % 96.5 % TOTAL GREAT THINGS HAPPEN WH
Slide 16: FFO per Share
FFO PER SHARE 2.10 2.37 0.64 9M/2017 9M/2018 % 12.9 increased by excluding Regency, per share, FFO 2.67 2.74 Excluding Regency FFO per share, excluding Regency, increased by 18.7 % 0.75 0.89 0.20 Q3/2017 Q3/2018 Excluding Regency 0.95 0.90 NIS
Slide 17: FFO bridge and Regency Centers sale
THIRD QUARTER 2018 – HIGHLIGHTS GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE During the period, the Company fully realized its investment in Regency Centers by divesting its remaining shares for approximately of NIS 4 billion. The decrease in FFO due to the sale of Regency shares is mostly
Slide 18: Balance Sheet Highlights
51.4 47.1 49.2 31/12/2017 30/9/2018 Pro Forma* LTV ( expanded solo) increased due to the depreciation of the BRL in the period, early repayments of debentures, tax payments due to the sale of Regency shares BALANCE SHEET HIGHLIGHTS THIRD QUARTER 2018 – HIGHLIGHTS 53.4 % 55.2 % 54.0 % 31/1
Slide 19: Equity per Share Bridge
48.2 47.1 0.90 0.05 0.58 0.80 0.38 0.26 EquityPer Share as of 30.06.18 FFO Fair value gain from Investment property including equity accounted investees Foreign currency translation reserves net of hedge Loss from buy back of debentures Dividend Other P&L items Equity Per Share as of 30.09.18 THI
Slide 20: Financial Strength
FINANCIAL STRENGTH MORUMBI| SÃO PAULO KOCHAV HATZAFON | TEL AVIV GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE BRIDGE TOWER I NEW YORK I NY
Slide 21: Refinancing and unencumbered assets
(1) Assuming refinancing NIS 3.6 billion without using other sources available for the Company with the same interest as the recent offerings of Series 13 debentures of 2.78 %. • Financial costs savings of NIS 40 million annually . • Expected savings by 2022 of approx . NIS 21 million annually th
Slide 22: Well Staggered Debt Maturity Schedule
0 828 1,043 904 904 1,117 1,177 1,004 1,094 911 730 8.5 % 10.7 % 9.3 % 9.3 % 11.5 % 12.1 % 10.3 % 11.3 % 9.4 % 7.5 % 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 0 500 1,000 1,500 2,000 2,500 3,000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 ʤʩʸʧʠʬʥ
Slide 23: Contact Information
Adi Jemini EVP & CFO CONTACT INFORMATION Doron Lavi Segelson Head of Investor Relations + 972.3.6948037 dlavi@gazitgroup.com THANK YOU FOR YOUR TIME. GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE