Gav-yam Lands Corp. Ltd · TASE:GVYM
Gav-yam Lands — Q1 2023 Earnings Presentation
72 slides from Gav-yam Lands's earnings presentation, Mar 31, 2023
Slide 1: Capital Market Presentation Q1 2023
מצגת CAPITAL שוק ההון MARKET PRESENTATION - - 1 רבעון Q1 2023
Slide 2: Main activity Q1 2023
Main activity Q1 2023 Executed Agreements for existing properties: 6.2% Real increase 34 lease agreements for a total 5% area of 38,000 m2 aboveground, Tenant replacement generating ILS 27 million per year, reflecting a real increase of 8.0%. 32% 63% Contract Option renewal exercise 2.9% Real increa
Slide 3: Main activity Q1 2023
Main activity Q1 2023 Executed agreement for projects in development Following the date of the financial statement, 2 agreements were executed, with a total area of 12,000 m2 aboveground, generating ILS 10 million per year (company’s share ILS 8 million), as follows: ● Agreement with Texas Instrumen
Slide 4: Main activity Q1 2023
Main activity Q1 2023 Development 14 development projects, with a total area of 516,000 m2, total investment of ILS 5.2 billion, which generate additional annual income representing ILS 450 million. Expected return from these projects is 7.9% (without the server farm). ● To date the company has mark
Slide 5: Main activity Q1 2023
Main activity Q1 2023 Projects ending in 2023: ● Rav Bariach #1 - area of 41,000 m2 (28,000 m2 company’s share), annual revenue of ILS 12 million; completed and fully occupied. ● Matam East #2 - 48,000 m2, ILS 33 million - completed after the report date and fully marketed. ● Gav-Yam Raanana - 73,00
Slide 6: Main activity Q1 2023 - NOI
Main activity Q1 2023 NOI ● NOI in Q1 this year totaled ILS 155 million, an increase of 17% compared to last year. ● In 2023, this figure is expected to total ILS 630-645 million, an increase of 15% (ILS 80 million), compared to 2022. 6
Slide 7: Main activity Q1 2023 - FFO
Main activity Q1 2023 FFO ● FFO attributed to shareholders in Q1 of this year totaled ILS 96 million, an increase of 43% (or ILS 30 million) compared to the corresponding quarter last year, an increase of 16% (ILS 16 million) compared to the Q4 2022. ● FFO attributed to shareholders projected for 20
Slide 8: Urban building plans under planning and licensing
Main activity Q1 2023 Urban building plans (UBS) under planning and licensing procedures UBS Current situation Updated condition Status 100,000 m2 business and retail Herzliya North 55,000 m2 UBS in planning process. 300 residential units 50,000 m2 business Approval in principle by local Historic Re
Slide 9: About Gav-Yam (as of March 2023)
About Gav-Yam (as of 31 March 2023) 400 ILS 10.1 billion income-generating 54.9% ILS 4.0 billion customers property value Leverage equity for shareholders 4.5 years 10.3years The bonds are rated il AA/il Aa 2 ILS 0.9 billion liquid assets ILS 0.35 avg. duration of lease avg. duration of lease agreem
Slide 10: About Gav-Yam (as of March 2023)
About Gav-Yam (as of 31 March 2023) ILS 2.9 billion backlog revenues ILS 1.6 billion backlog revenue from ILS 1.1 million m2 98% from leases without leases for properties income-generating areas Occupancy rate development properties under construction 1.1% weighted avg. 8.0% real increase in rent in
Slide 11: About Gav-Yam (as of March 2023)
About Gav-Yam (as of 31 March 2023) ILS 178 million revenue from leased ILS 155 million ILS 88 million ILS 96 million properties and NOI net profit for shareholders FFO for shareholders management fees 8.3% increase in same ILS 141 million cashflow from properties NOI current activity 11
Slide 12: Income-generating property value (ILS 10,070 million)
Income-generating property value (ILS 10,070 million) 6.4% weighted rate of return 1,100,000 m2* 2,338 million ILS 7,236 million 23% weighted average ILS 72% 5.9% rate of return weighted average 6.5% rate of return 282,000 m2 Logistics and industry high-tech parks 768,000 m2 and offices 496 million
Slide 13: The Company's Customers
GAV®YAM THE COMPANY'S CUSTOMERS 2 amazon é = Google SEMicrosot| PHILIPS ><1\ EMC (intel, wix ANiDIA RAFAELGD Medtronic @ enggtii. iy mobileve G|Apever MOTOROLA tufin Zerto varons G Lightricks trad pwdsoo oRAcLe (Pfizer) NOVA *leidos WApestiver folmenafohmen siemens [ial ere 8 = Vv ‘O) Zim ‘E2) «© SG
Slide 14: High-tech, logistics and industry parks in 19 cities
19cities HAIFA TIRAT HACARMEL AFULA 22 CAESAREA HERZLIYA ROSH HAAYIN TEL AVIV high-tech, HOLON logistics and BEER YAAKOV LOD NESS ZIONA industry parks MODI'IN REHOVOT GEDEROT JERUSALEM 98% YAVNE ASHKELON occupancy rate BEER SHEVA 14
Slide 15: Sustainability
Sustainability Natural gas connection Construction of PV systems Energy centers Electric charging LEAD PLATINUM Green construction 15
Slide 16: Financial Data
FINANCIAL DATA Gav-Yam Negev
Slide 17: Financial results for Jan-Mar 2023
Financial results for Jan-Mar 2023 (ILS million) 178 155 154 143 133 132 129 96 88 67 REVENUE NOI NOI SAME NET FFO FOR FROM LEASED PROPERTIES SHAREHOLDER SHAREHOLDERS PROPERTIES AND PROFIT MANAGEMENT FEES 1-3.22 1-3.23 17
Slide 18: Growth in NOI
Growth in NOI (in ILS million) r 1 5% 72% ove 630-645 2 m i l l i o n ( )ILS 23 555 522 516 490 441 430 406 377 349 333 323 155 133 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2022 Q1 2023 2023 תחזית 18
Slide 19: Growth in FFO for shareholders
Growth in FFO for shareholders (ILS millions) 20% ] [~ 132% 360-380 i l l i o n ( S 1 78 m ) I L 313 253 240 231 199 187 170 159 135 132 132 96 67 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2022 Q1 2023 forecast 2023 19
Slide 20: Shareholder equity
Shareholder equity (ILS millions) 17 1% i o n ( 7 mill 3,981 2 , 51 3,972 ) I LS 3,611 2,774 2,710 2,444 2,347 1,965 1,748 1,591 1,505 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 31.03.2023 20
Slide 21: Distribution of real estate value for investment
Distribution of real estate value for investment (ILS 13,091 million) 18% 2,038 Investment 77% property under construction 10,070 5% 623 income- lands generating real estate 21
Slide 22: Gross financial debt (ILS 7,107 million)
Gross financial debt (ILS 7,107 million) As of 31 March 2023 1.1% weighted effective interest, index-linked 3.9 weighted duration in years 35% 65% index linked fixed ILS 2,467 4,640 22
Slide 23: Debt principal repayment schedule
Debt principal repayment schedule (ILS millions) 2,367 1,162 1,075 984 699 425 395 2023 2024 2025 2026 2027 2028 2029-2035 23
Slide 24: Financial data (ILS millions)
Financial data (ILS millions) Consolidated 1-3/2023 1-3/2022 Change in % NOI 155 133 16.5 NOI same properties 143 132 8.3 Increase in fair value of investment real 45 161 )72.0( Cashflows from current activity 141 102 38.2 Net profit for shareholders* 88 129 )31.8( FFO for shareholders according to
Slide 25: Financial data (ILS millions)
Financial data (ILS millions) Consolidated 31/03/2023 31/12/2021 Liquid Assets 856 1,616 Fair value of investment property of which: 13,091 12,549 Investment property under construction 2,398 2,038 Land 623 674 Income-generating real estate 10,070 9,837 Other properties 408 521 Total assets 14,355 1
Slide 26: Financial data (ILS millions)
Financial data (ILS millions) Consolidated 31/03/2023 31/12/2021 Financial debt, gross 7,107 7,494 Other liabilities 547 485 Reserve for deferred taxes 1,570 1,568 Equity attributed to shareholders 3,981 3,972 Non-controlling interests* 1,150 1,167 Total equity and liabilities 14,355 14,686 *Share a
Slide 27: Financial data (ILS millions)
Financial data (ILS millions) 31/03/2023 31/12/2022 Change in % Investment real estate 13,091 12,549 4.3 Net financial debt 6,251 5,879 6.3 Leverage rate 54.9% 53.3% 1.6 Shareholder equity 3,981 3,972 0.2 * Market value as of 23 April 2023 – ILS 5,541 million. 27
Slide 28: Financial data - standalone extended
Financial data (ILS millions) STANDALONE EXTENDED* 31/03/2023 31/12/2022 Liquid assets 761 1,459 Fair value of investment property of which: 11,094 10,594 Investment property under construction 2,113 1,794 Land 490 530 Income-generating real estate 8,491 8,270 Other properties 370 485 Total assets 1
Slide 29: Financial data - standalone extended
Financial data (ILS millions) STANDALONE EXTENDED* 31/03/2023 31/12/2022 Financial debt, gross 6,648 7,020 Other liabilities 307 262 Reserve for deferred taxes 1,289 1,284 Equity 3,981 3,972 Total capital and liabilities 12,225 12,538 *Standalone extended = share attributed to shareholders (Matam 50
Slide 30: Financial data - standalone extended
Financial data (ILS millions) STANDALONE EXTENDED* 1-3/2023 1-3/2022 Change in % NOI 127 110 15.5 NOI same properties 118 109 8.3 Increase in fair value of investment real estatepropertyestate 42 126 )66.7( Net financing expenses 59 73 )19.2( Tax expenses 10 25 )60.0( Net profit 88 129 )31.8( FFO to
Slide 31: Main Properties
MAIN PROPERTIES Gav-Yam Hebrew
Slide 32: Gav-Yam Hebrew campus: 423,000 m2
Area 317,000 m2 In development 106,000 m2 (without data centre areas) Total area 423,000 m2 (without data centre areas) NOI in 2022 ILS 156 million Added NOI from development projects ILS 97 million (without data centre areas) Total NOI ILS 223 million (without data centre revenue) Figures are 100%
Slide 33: 310,000 m2 property
Area 250,000 m2 In development 60,000 m2 Total area 310,000 m2 NOI in 2022 ILS 147 million Added NOI from development projects ILS 42 million Total NOI ILS 189 million * The images are for illustration purposes only 33
Slide 34: ToHa #1 + #2
ToHa #1 + #2 ToHa 1 89,000 m2 ToHa 2 - under construction 205,000 m2 Total area 294,000 m2 NOI in 2022 ILS 94 million Added NOI from development projects ILS 280 million Total NOI ILS 374 million Figures are 100% (Gav-Yam’s share 50%) 34
Slide 35: Completed Projects
COMPLETED PROJECTS 35
Slide 36: MATAM Towers East #2
s t # 2 A M Ea MATAM Towers East M AT d to rt ke e #2 fully m a anies comp Area ional at 48,000 m2 intern of which 29,700 m2 aboveground Total cost ILS 289 million NOI ILS 33 million Return 11.4% Figures are 100% (Gav Yam’s share 50.1%) * The images are for illustration purposes only 36
Slide 37: Ashkelon Rav Bariach #1
ASHKELON rketed Rav Bariach#1 ly ma ful Area 41,000 m2 (28,000 m2 company’s share) Total cost (company’s share) ILS 206 million NOI (company’s share) ILS 12 million Return 6.0% Figures 100% (Gav-Yam’s share 70.0%) * The images are for illustration purposes only 37
Slide 38: Projects in Development
PROJECTS IN DEVELOPMENT 38
Slide 39: Projects in development
around 54% of the total aboveground Projects in development areas of the projects under construction have been marketed by the company Annual Rate of Revenue for Construction remaining Consolidated Above- ground Parking lot Total Holding rate Total costs (including land) costs as of 31 March 2023 re
Slide 40: Projects in development - standalone extended
around 54% of the total aboveground Projects in development areas of the projects under construction have been marketed by the company STANDALONE Above- Parking lot Total Construction Remaining costs (including costs as of 31 Annual representative leasing revenue ILS Rate of marketed Completion grou
Slide 41: MATAM Towers East #3
MATAM East #3 MATAM Towers East #3 Area 42,500 m2 of which 29,500 m2 aboveground Completion date Q3 2025 Total cost ILS 314 million NOI ILS 31 million Return 9.9% Figures are 100% (Gav Yam’s share 50.1%) * The images are for illustration purposes only 41
Slide 42: Raanana
RAANANA Area 72,600 m2 (50,400 m2 company’s share) of which 40,000 m2 aboveground (28,000 m2 company’s share) Completion date Q3 2023 Total cost (company’s share) ILS 347 million NOI (company’s share) ILS 24 million Return 7.0% * The images are for illustration purposes only 42
Slide 43: Raanana construction progress
RAANANA Construction progress 43 March 2023
Slide 44: Hebrew Campus buildings #1, #2
Area 89,000 m2 (59,000 m2 company’s share) of which 57,000 m2 aboveground Building #1 Building #2 (38,000 m2 company’s share) Completion date 37% marketed Q2 2024 Total cost (company’s share) ILS 654 million NOI (company’s share) ILS 51 million Return 7.8% * The images are for illustration purposes
Slide 45: Construction progress
Construction progress Building #1 Building #2 45 March 2023
Slide 46: Gav-Yam O2
Area 60,000 m2 of which fully m 38,000 m2 intern arketed t ation aboveground al como an pany Completion date Q4 2025 Total cost ILS 660 million NOI ILS 42 million Return 6.4% * The images are for illustration purposes only 46
Slide 47: Construction progress
Construction progress 47 April 2023
Slide 48: ToHa 2
Area 205,000 m2 of which 160,000 m2 above ground areas Completion date Q4 2026 Total cost ILS 3.1 million NOI ILS 280 million Return 9.0% Figures 100% (Gav-Yam’s share 50%) * The images are for illustration purposes only 48
Slide 49: Construction progress April 2023
התקדמות הבנייה 49 April 2023
Slide 50: Holon Building #3
HOLON 88% Building #3 Gov ma ernm rket ent ed to Area Com plex 44,000 m2 of which 22,000 m2 aboveground Completion date Q2 2024 Total cost ILS 332 million NOI ILS 20 million Return 6.0% * The images are for illustration purposes only 50
Slide 51: Holon construction progress
HOLON Construction progress 51 March 2023
Slide 52: Haifa Bay #4
HAIFA BAY 4# d arkete fully m Area approx. 20,000 m2 Completion date Q3 2023 Total cost ILS 135 million NOI ILS 11 million Return 7.8% * The images are for illustration purposes only 52
Slide 53: Haifa Bay #4 construction progress
HAIFA BAY 4# Construction progress 53 March 2023
Slide 54: Haifa Bay #5
HAIFA BAY 5# lmog Building #5 rketed to A ma Area fully approx. 7,800 m2 Completion date Q3 2024 Total cost ILS 64 million NOI ILS 4.4 million Return 7.0% * The images are for illustration purposes only 54
Slide 55: Ashkelon Rav Bariach #2
Fully m arkete ASHKELON d Rav Bariach #2 Area approx. 55,000 m2 Completion date Building #2 Q1 2026 Total cost ILS 397 million NOI ILS 24 million Return 6.0% Figures 100% (Gav-Yam’s share 70%) * The images are for illustration purposes only *ההדמיה להמחשה בלבד 55
Slide 56: Project: 15,000 m2 aboveground
Area 15,000 m2 aboveground Completion date Q4 2024 Total cost ILS 103 million NOI ILS 9 million Return 8.7% Figures 100% (Gav-Yam’s share 73.25%) * The images are for illustration purposes only 56
Slide 57: Project: 39,000 m2
marke ted to an int ernat Area ional comp 39,000 m2 any (28,000 m2 company’s share) of which 24,000 m2 aboveground (17,000 m2 company’s share) Completion date Q4 2024 Total cost (company’s share) ILS 181 million NOI (company’s share) ILS 14 million Return 7.7% * The images are for illustration purpo
Slide 58: Construction progress
Construction progress 58 March 2023
Slide 59: Data centre
Data centre Supply of 9.5 megawatts (14,000 m2) 1,750 racks Completion date Q3 2024 Total cost ILS 355 million NOI ILS 70 million IRR 9% * The images are for illustration purposes only *ההדמיה להמחשה בלבד 59
Slide 60: Construction progress
Construction progress 60
Slide 61: Construction of rooftop PV installations
Construction of rooftop PV installations on company buildings Project 40 PV installations Power supply 7 megawatts Investment ILS 31 million NOI ILS 6 million 61
Slide 62: Urban Building Plans
URBAN BUILDING PLANS 62
Slide 63: Herzliya North
Herzliya North Current status 55,000 m2 constructed (excluding O2) Planned status 100,000 m2 industry and retail 300 residential units 63
Slide 64: Herzliya North
Herzliya North Current status 55,000 m2 constructed (excluding O2) Planned status 100,000 m2 industry and retail 300 residential units * The images are for illustration purposes only 64
Slide 65: Historic Rehovot
Historic Rehovot Current status 5,000 m2 constructed Planned status 50,000 m2 constructed 35,000 m2 retail 400 residential units 65
Slide 66: Historic Rehovot
Historic Rehovot Current status 5,000 m2 constructed Planned status 50,000 m2 constructed 35,000 m2 retail 400 residential units * The images are for illustration purposes only 66
Slide 67: Acre
Acre i a ee Current status
Slide 68: Acre
Acre Planned status About 1,000 residential units * The images are for illustration purposes only 68
Slide 69: Holon urban building plan
Current status 60,000 m2 constructed Planned status 500,000 m2 offices 60,000 m2 industry and retail 850 residential units 69
Slide 70: Holon urban building plan
Current status 60,000 m2 constructed Planned status 500,000 m2 offices 60,000 m2 industry retail 850 residential units * The images are for illustration purposes only 70
Slide 71: 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
Slide 72: Thank you
Thank you