Gav-yam Lands Corp. Ltd · TASE:GVYM
Gav-yam Lands — Q2 2024 Earnings Presentation
70 slides from Gav-yam Lands's earnings presentation, Jun 30, 2024
Slide 1: Presentation for the Capital Market, 2nd Quarter
PRESENTATION FOR THE CAPITAL MARKET 2ND QUARTER 1
Slide 2: The Google transaction
The Google transaction Tenant Aboveground leased area 60,000 m2 Annual revenue ILS 115 million (shell-and-core level) Date of completion of the project Q4 2026 Data for 100% (Gav-Yam’s share 50%) * The images are for illustration purposes only 2
Slide 3: The world's largest technology companies choose Gav-Yam
The world’s largest technology companies choose Gav-Yam These companies lease areas totaling 300,000 m2, which generate ILS 340 million in revenue, constituting 35% of Gav-Yam’s representative revenue. * After completion of projects in development. 3
Slide 4: Israel's largest defense companies choose Gav-Yam
Israel’s largest defense companies choose Gav-Yam KRATOS GENERAL MICROWAVE Microwave Electronics Division KRATOS GENERAL MICROWAVE Microwave Electronics Division These companies lease areas totaling 80,000 m2, which generate ILS 60 million in revenue, constituting 6% of Gav-Yam’s representative reve
Slide 5: About Gav-Yam (Jan-Jun 2024)
Main activity About Gav-Yam (Jan-Jun 2024) 1.2 million m2 income-generating areas 360,000 m2 areas under development 1.5 million m2 income-generating + 450,000 m2 available building rights development properties ILS 352 million revenue from leased ILS 340 million ILS 11.5 billion 6.7% average cap ra
Slide 6: About Gav-Yam (as of Jun 2024)
Main activity About Gav-Yam (as of 30 Jun 2024) ILS 3.3 billion ILS 1.1 billion 4.4 billion backlog revenue from leases without backlog revenue from leases for executed agreements in ILS backlog revenue forecast from leases from income-generating properties + executed 400 customers development prope
Slide 7: About Gav-Yam (as of Jun 2024)
Main activity About Gav-Yam (as of 30 Jun 2024) 1.52% weighted avg effective interest, ILS 203 million FFO for shareholders 55.2% leverage ILS 4.5 billion equity for shareholders index-linked per management* 96% occupancy rate ILS 515 million credit facility ILS 500 million liquid assets** ILS 301 m
Slide 8: Lease agreements and real rent increase
Main activity Real increase in rent Jan-Jun 2024 68 lease agreements for total area renewal contract 15% of 73,000 m2 aboveground, real increase generating ILS 61 million per year, real 45% increase, in excess of index increase (and offsetting TI), of 10%. In Q2 2024, 34 lease agreements were execut
Slide 9: Completion of projects – Jan-Jun 2024
Main activity Completion of projects – Jan-Jun 2024 RAANANA Area 72,600 m2 (24,000 m2 company’s share) NOI ILS 32 million (company’s share) 54% occupancy rate * The images are for illustration purposes only 9
Slide 10: Development as of Jun 2024
Main activity Development as of 30 Jun 2024 9 development projects, total area of 360,000 m2, total investment of ILS 4.2 billion (ILS 3.3 billion without land), which generate additional annual representative income of ILS 330 million. The expected return from these projects is 7.9%. Upon completio
Slide 11: Acquiring residential activity from Property and Building Corp
Main activity Acquiring residential activity from Property and Building Corp Acquiring residential projects: Dafna complex - Tel Aviv Ramat Verber - Petah Tikva Ramat Ilan - Kiryat Ono Total 550 residential units (company’s share) Dafna complex – Tel Aviv * The images are for illustration purposes o
Slide 12: NOI Jan-Jun 2024
Main activity NOI Jan-Jun 2024 NOI 1-6.2024 1-6.2023 Increase % change 7% 340 NOI 340 318 22 7% 318 *figures in ILS millions Projected NOI for 2024 ILS 685-705 million 1-6.2023 1-6.2024 12
Slide 13: NOI Apr-Jun 2024
Main activity NOI Apr-Jun 2024 NOI 4-6.2024 4-6.2023 Increase % change 5% 171 NOI 171 163 8 5% 163 *figures in ILS millions 4-6.2023 4-6.2024 13
Slide 14: FFO Jan-Jun 2024
Main activity FFO Jan-Jun 2024 FFO PER MANAGEMENT 1-6.2024 1-6.2023 Increase % change APPROACH FFO 203 198 5 3% PER MANAGEMENT APPROACH 203 198 FFO PER ISRAEL SECURITIES 127 104 23 22% AUTHORITY APPROACH *figures in ILS millions • Projected FFO, per management, for 2024 - 1-6.2023 1-6.2024 ILS 390-4
Slide 15: FFO Apr-Jun 2024
Main activity FFO Apr-Jun 2024 FFO PER MANAGEMENT 4-6.2024 4-6.2023 Increase % change APPROACH FFO 102 102 PER MANAGEMENT APPROACH 102 102 - - FFO PER ISRAEL SECURITIES 39 52 )13( )25%( AUTHORITY APPROACH *figures in ILS millions 4-6.2023 4-6.2024 15
Slide 16: Debt Raising
Debt Raising In 2024, the company and subsidiaries raised a total debt amount of ILS 2.2 billion, with a weighted average duration of 3.8 years, at a weighted average interest rate of 3.0%, linked to the consumer price index. ILS 300 million ILS 743 million 1.585% interest, index-linked 3.34% intere
Slide 17: Photovoltaic facilities
Photovoltaic facilities Number of System capacity Cost of Representative System status systems (MW) construction (ILS annual income (ILS Annual return millions) millions) Income-generating 43 6.9 34.4 4.8 14% In development 45 7.3 34 4.2 13.1% Forecast Dec 2024 88 14.2 68.4 9 13.8% CUMULATIVE NUMBER
Slide 18: Financial Data
FINANCIAL DATA *ההדמיה להמחשה בלבד
Slide 19: Financial results for Q2 2024
Financial results for Q2 2024 (ILS millions) 392 407 364 357 340 335 331 318 303 317 198 203 127 104 REVENUE FROM NOI SAME PROPERTY FAIR VALUE NET SHAREHOLDER FFO FOR FFO FOR LEASED PROPERTIES NOI INCREASE OF PROFIT SHAREHOLDERS SHAREHOLDERS PER AND MANAGEMENT INVESTMENT REAL PER MANAGEMENT ISRAEL S
Slide 20: Growth in NOI
Growth in NOI (ILS millions) 88% 685-705 657 i l l i o n ) (ILS 308 m 522 555 516 490 430 441 406 377 349 340 318 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2023 H1 2024 Forecast 2024 20
Slide 21: Growth in FFO for shareholders per management approach
Growth in FFO for shareholders per management Approach (ILS millions) 204% 401 390-405 l i o n ) m i l 269 313 (ILS 253 231 240 199 198 203 187 170 159 132 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2023 H1 2024 Forecast 2024 * FFO per Israel Securities Authority approach see p. 14. 21
Slide 22: Shareholder equity
Shareholder equity (ILS millions) 4,511 184% 3,976 4,205 ) 3,611 l i o n 9 20 mil ILS 2 , ( 2,710 2,774 2,347 2,444 1,965 1,748 1,591 110 120 150 180 180 200 200 260 570 275 160 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 30.06.2024 S
Slide 23: Distribution of real estate value for investment
Distribution of real estate value for investment (ILS 14,798 million) As of 30 Jun 2024 18% 2,675 real estate under construction* 78% 4% 11,518 income-generating 605 lands real estate* 23
Slide 24: Financial strength
Financial strength Change in weighted capitalization rate compared to As of 30 Jun 2024 change in weighted interest rate for the company 7.45% 7.38% Weighted capitalization rate Weighted avg. effective interest, index linked Marginal cost of capital 3.34% for debenture 6.95% series K, avg. duration
Slide 25: Gross financial debt
Gross financial debt (ILS 7,777 million) As of 30 Jun 2024 1.52% weighted effective interest, index-linked 35% fixed ILS 2,688 65% 3.5 weighted duration index linked 5,089 in years 25
Slide 26: Debt principal repayment schedule
Debt principal repayment schedule (ILS millions) As of 30 Jun 2024 1,501 1,436 855 543 515 515 515 515 515 515 272 80 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 26
Slide 27: Financial data
Financial data (ILS millions) Consolidated 1-6/2024 1-6/2023 Change in % NOI 340 318 22 Same Property NOI 317 303 14 Increase in fair value of investment real estate 357 407 )50( Cashflows from current activity 301 295 6 Net profit for shareholders* 331 335 )4( FFO for shareholders per management ap
Slide 28: Financial data
Financial data (ILS millions) Consolidated 30/6/2024 31/12/2023 Liquid Assets 500 1,006 Fair value of investment property of which: 14,798 13,988 Real estate under construction 2,675 2,398 Land 605 608 Income-generating real estate 11,518 10,982 Other properties 603 433 Total assets 15,901 15,427 *
Slide 29: Financial data
Financial data (ILS millions) Consolidated 30/6/2024 31/12/2023 Financial debt, gross 7,777 7,911 Other liabilities 473 334 Reserve for deferred taxes 1,753 1,666 Equity attributed to shareholders 4,511 4,205 Non-controlling rights * 1,387 1,311 Total equity and liabilities 15,901 15,427 * Share att
Slide 30: Financial data
Financial data (ILS millions) Consolidated 30/6/2024 31/12/2023 Investment real estate 14,798 13,988 Net financial debt 7,277 6,905 Leverage rate 55.2% 55.6% Shareholder equity 4,511 4,205 30
Slide 31: Financial data
Financial data (ILS millions) Standalone extended* 1-6/2024 1-6/2023 Change in % NOI 273 260 13 Same Property NOI 257 246 11 Increase in fair value of investment real estate 254 275 )21( Net financing expenses 116 126 )10( Tax expenses 66 60 6 Net profit 331 335 )4( FFO to shareholders per managemen
Slide 32: Financial data
Financial data (ILS millions) Standalone extended* 30/6/2024 31/12/2023 Liquid assets 431 892 Fair value of investment property of which: 12,462 11,785 Real estate under construction 2,585 2,230 Land 455 458 Income-generating real estate 9,422 9,097 Other properties 568 383 Total assets 13,461 13,06
Slide 33: Financial data
Financial data (ILS millions) Standalone extended* 30/6/2024 31/12/2023 Financial debt, gross 7,235 7,404 Other liabilities 301 99 Reserve for deferred taxes 1,414 1,352 Equity 4,511 4,205 Total capital and liabilities 13,461 13,060 * Standalone extended = share attributed to shareholders (Matam 50.
Slide 34: Income-Generating Properties
INCOME-GENERATING PROPERTIES 34
Slide 35: High-tech parks, logistics and industry
19 HAIFA AFULA TIRAT HACARMEL HIGH-TECH PARKS CAESAREA logistics and industry RAANANA 16 HERZLIYA TEL AVIV HOLON BEER YAAKOV LOD NESS ZIONA MODI'IN cities REHOVOT JERUSALEM YAVNE 96% occupancy rate BEER SHEVA 35
Slide 36: Income-generating value
Income-generating value (ILS 11,518 milion) 6.7% weighted ROI 1.2 million m2 19% ILS 2,224 million* Logistics and industry weighted average 6.2% rate of return ILS 8,759 million 253,000 m2 6.7% weighted average rate of return 845,000 m2 ILS 535 million 8.0% weighted average 5% 57,000 m2 rate of retu
Slide 37: Projects in development
Projects in development Total area of projects in development - 360,000 m2 consolidated, total investment of ILS 4.2 billion Gav-Yam Haifa Bay #5 Matam East Towers #3 8,000 m2 43,000 m2 100% marketed 3% marketed HAIFA The server farm 14,000 m2 TOHA 2 100% marketed 101,000 m2 38% marketed Gav-Yam O2
Slide 38: Projects in development
Projects in development 56% of the total aboveground areas of the projects under construction have been marketed Jan-Jun 2024 Annual Rate of Revenue for Construction Balance of Above- Parking Holding representative marketed marketed Completion Consolidated Total Total costs (including costs as of 30
Slide 39: Projects in development
Projects in development 56% of the total aboveground areas of the projects under construction have been marketed (ILS millions) Standalone Construction Annual Rate of Revenue for extended* Above- Balance of costs representative marketed marketed Completion Parking lot Total costs (including ground a
Slide 40: Segmented NOI from existing income-generating properties
Segmented NOI from existing income-generating properties ILS 340 million, Jan-Jun 2024 ILS 111 million 33% 34% ILS Other 117 million Matam Park 25% 8% ToHa1 Gav-Yam Herzliya ILS ILS 27 85 million million 40
Slide 41: Segmented projected NOI from projects under development
Segmented projected NOI from projects under development ILS 330 million per year of which ILS 180 million in executed contracts ILS 45 million )of which ILS 45 million marketed( ILS150 14% 45% million Gav-Yam )of which ILS 58 million marketed( Herzliya ToHa2 14% Other* ILS47 million )of which ILS 38
Slide 42: Segmented projected NOI after completion of projects
Segmented projected NOI after completion of projects under development ILS 1.0 billion per year (1.5 million m2) ILS 260 million ILS 26% 210 million 21% Gav-Yam Other Herzliya ILS Gav-Yam Hebrew Campus 5% 50 million 20% ToHa 28% Matam Park ILS 200 million ILS 280 million 42
Slide 43: Holon Building #3
HOLON 92% marketed to Building #3 Government Complex Area 35,000 m2 of which 21,000 m2 aboveground Completion date Q3 2024 Total cost ILS 322 million NOI ILS 19 million Return 5.8% * The images are for illustration purposes only 43
Slide 44: Holon Construction progress
HOLON Construction progress JULY 2024 44
Slide 45: Hebrew Campus Jerusalem Buildings #1,2
Area 88,000 m2 (58,000 m2 company’s share) of which 53% marketed 56,000 m2 aboveground KRATOS GENERAL MICROWAVE (37,000 m2 company’s share) Microwave Electronics Division Completion date Building #1 Building #2 Q4 2024 Total cost ILS 696 million NOI ILS 48 million Return 6.9% * The images are for il
Slide 46: Construction progress
Construction progress Building #1 Building #2 JULY 2024 46
Slide 47: Haifa Bay #5
HAIFA BAY 5# fully marketed to Almog Building #5 Area 8,000 m2 Completion date Q4 2024 Total cost ILS 69 million NOI ILS 4.7 million Return 6.9% * The images are for illustration purposes only 47
Slide 48: Haifa Bay #5 Construction progress
HAIFA BAY 5# Construction progress JULY 2024 48
Slide 49: Negev
NEGEV 17% marketed to international fund Area 15,000 m2 Completion date Q1 2025 Total cost ILS 112 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: Negev Construction progress
NEGEV Construction progress JULY 2024 50
Slide 51: Rehovot Building #5
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 ILS 201 million NOI ILS 14 million Return 7.0% * The images are for illustration purposes
Slide 52: Rehovot Construction progress
REHOVOT Construction progress JULY 2024 52
Slide 53: Server Farm
SERVER FARM Area 14,000 m2 Completion date Q3 2027 100% marketed Total cost ILS 150 million NOI ILS 12 million 53
Slide 54: Gav-Yam O2
Area 61,000 m2 of which fully marketed to an international company 39,000 m2 aboveground Completion date Q2 2026 Total cost ILS 700 million NOI ILS 45 million Return 6.4% * The images are for illustration purposes only 54
Slide 55: Construction progress
Construction progress JULY 2024 55
Slide 56: Matam Towers East #3
MATAM East #3 MATAM Towers East #3 Area 42,500 m2 of which 29,500 m2 aboveground Completion date Q3 2026 Total cost ILS 338 million NOI ILS 31 million Return 9.3% Figures are 100% (Gav Yam’s share 50.1%) * The images are for illustration purposes only 56
Slide 57: Construction progress
Construction progress JULY 2024 57
Slide 58: ToHa 2
38% marketed to Area 201,000 m2 of which 156,000 m2 aboveground Completion date Q4 2026 Total cost ILS 3.3 billion NOI ILS 300 million Return 9.1% Figures are 100% (Gav Yam’s share 50%) * The images are for illustration purposes only 58
Slide 59: Construction progress
Construction progress 46 25 JULY 2024 59
Slide 60: Gav-Yam and Amot purchasing properties bordering the ToHa complex
TOHA #2 Gav-Yam and Amot are TOHA #3 purchasing properties bordering the ToHa complex, in order to further develop and increase building rights TOHA #1 in the complex, for purpose of constructing ToHa #3. 60
Slide 61: Projects at planning and licensing stages
Projects at planning and licensing stages HAIFA Gav-Yam Haifa Bay Kiryat Hamelacha #1 Herzliya North Western Building 30,000 m2 aboveground 11,000 m2 aboveground HERZLIYA Gav-Yam Park Rehovot #6 REHOVOT Gav-Yam Hebrew Campus #3 15,000 m2 aboveground JERUSALEM 25,000 m2 aboveground 10,000 m2 undergro
Slide 62: Gav-Yam Residential
Eerereeray! 4 GAV-YAM RESIDENTIAL
Slide 63: Residential properties
Residential properties Total of 6,800 residential units Acre Kiryat Yam – Urban Renewal 1,000 units 2,500 units ACO KIRYAT YAM Matam-Lot 8001 HAIFA 500 units Herzliya North - Micro Units 400 units Tel Aviv - Dafna Project - Urban Renewal Petah Tikva - Ramat Verber 360 units (company’s share) Urban R
Slide 64: Residential
Residential Project/town building plan Residential units (company’s share) Projects in Tel Aviv – Dafna – Complex 505 102 (including 21 rental residential units) construction and marketing Kiryat Ono – Ramat Ilan* 40 Tel Aviv – Dafna – Complex 501 171 (including 35 rental residential units) Tel Aviv
Slide 65: Residential
Residential Short-term (1-2 years) Medium-term (3-4 years) Long-term (5 or more years) Complex 505 – Dafna Complex 501 – Dafna Kiryat Yam town building plan Herzliya North town building Complex 502 – Dafna Holon town building plan plan – phase I (parcel 21) Beer Sheva town building Petah Tikva – Ram
Slide 66: Tel Aviv - Dafna Complex
TEL AVIV - DAFNA COMPLEX 505 Residential units 232, of which 124 for sale, 76 to the rights holders and 32 rental units Sales as of 30 Jun 2024 40 residential units, in consideration for ILS 160 million Projected revenue ILS 784 million Projected expenses ILS 665 million Projected profit ILS 119 mil
Slide 67: Dafna project
Dafna project 67
Slide 68: Dafna project
Dafna project 68
Slide 69: Herzliya North - micro units
HERZLIYA Herzliya North - micro units Residential units (phase I) 300 (out of 400) * The images are for illustration purposes only 69
Slide 70: 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