Azrieli Group Ltd. · TASE:AZRG
Azrieli — Q2 2025 Earnings Presentation
47 slides from Azrieli's earnings presentation, Aug 18, 2025
Slide 1: Investor Presentation
Investor Presentation 30 June 2025 | 2025 מרץ,מצגת משקיעים
Slide 2: Disclaimer
DISCLAIMER The information included in this presentation is merely a summary and does not exhaust all of the Slides 12-14 and 17 – The Company’s estimations regarding the projected increase in the results of the information about the Company and its operations, nor is it a substitute for inspection
Slide 3: Azrieli Group / Business Card
Azrieli Group / Business Card Israel’s largest real Traded on the capital ~80% estate company market since 2010 of the value of income-producing investment and under-construction Free float: 30.1% properties (on a consolidated basis) is attributed to real estate in Israel Average occupancy rate in A
Slide 4: Property Portfolio
Property Portfolio(1) Malls and retail centers Offices 23 malls and retail centers 379,000 sqm Senior Homes 17 office and other properties – Rental Housing Israel 655,000 sqm 8 office properties – overseas 245,000 sqm 4 senior homes 115,000 sqm 1,141 Apts. 3 rental housing properties 34,000 sqm 357
Slide 5: Properties Breakdown, NIS in millions
Properties Breakdown, NIS in millions(1) Hotels 1% 30% Real estate in Israel – offices and other spaces 607 17,865 Rental housing 4% 27% in Israel Real estate in Israel 2,099 – Retail centers and malls 16,326 Income- producing 3% 1,719 17% properties in the U.S. Data centers 10,452 Cash, holdings, o
Slide 6: Q2/2025 Financial Highlights
Q2/2025 Financial Highlights (NIS in millions, compared with Q2/2024) NOI 648 +17% Results of Q2 Same-property 576 2025 +4% NOI FFO 425 Growing Strong )1%( FFO (excluding senior 417 +7% housing) Investments in development 1,826 (H1/2025) Leverage ratio 37% Equity/assets 41% Dividend 800 6.60 per sha
Slide 7: Operating Segments
Operating Segments 7 Investor Presentation, June 2025
Slide 8: Malls and Retail Centers
Malls and Retail Centers GLA 75 million NOI in Q2/2025 NIS 239 million ~379,000 sqm)1( Versus NIS 249 million in Q2/2024, primarily owing to Annual footfall the impact of Operation Rising Lion in June. Innovation and Renewal Book Value Average occupancy rate Approx. NIS 16.3 billion Azrieli Gift Car
Slide 9: Store Sales and Occupancy Cost Ratio
Store Sales and Occupancy Cost Ratio Total Change in Store Sales in Azrieli Malls January-May (1.5%) January-May 2024 2025 Occupancy Cost Occupancy Cost Ratio Ratio 12.2% 12.3% 11.9% 12.0% 12.0% 11.9% 11.9% 11.3% 11.5% 11.2% 11.2% 11.5% 10.9% 10.6% 9.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 10: Offices
Offices Innovation and NOI in Q2/2025 GLA Renewal NIS 240 million ~ 655,000 sqm)1( including a net amount of NIS 14 million in non-recurring Community compensation by a departing tenant. Compared with NIS 211 million in Q2/2024. Technology Book Value Average Betterment and occupancy rate upgrade of
Slide 11: Office Tenants
Office Tenants 11 Investor Presentation, June 2025
Slide 12: Global Data Center Operations – Green Mountain Global
Global Data Center Operations – Green Mountain Global NOI in Q2/2025 NIS 115 million Versus NIS 43 million in Q2/2024 GMG - Contracted NOI / MW Hamar NIS 587M / 170MW Rjukan )1( Oslo Stavanger )€ 149M) London Power generated by renewable energy Frankfurt 100% Power costs PUE low low Recognition as o
Slide 13: Global Data Center Operations – Contracted MW
Global Data Center Operations – Contracted MW U.K. Norway London Hamar 7 MW 90 MW Hamar Rjukan Oslo Enebakk Stavanger Germany 26 MW Frankfurt 36 MW Rjukan London (Company’s share: 11 MW 18MW) Frankfurt Rennesøy Total 18 MW 170 MW 13 Investor Presentation, June 2025
Slide 14: Expansion of Global Data Center Operations – Green Mountain Global
Expansion of Global Data Center Operations – Green Mountain Global Significant growth since the acquisition of Green Mountain (July 2021) Acquisition – July 2021 2025 Change Countries of operation 1 3 x3 Number of sites 3 6(1) x2 MW (2) 24 170 x7 NOI (NIS in millions)(2) 84 587(3) x7 (1) Including a
Slide 15: Green Mountain Global - Global Data Center Operations
Green Mountain Global - Global Data Center Operations SVG1 – Rennesøy RJU1 – Rjukan OSL1 – Enebakk OSL2 – Hamar LON1 – East FRA1 – Mainz A former NATO ammunition Colocation data center Hyperscale and East London location, storage facility located at the nexus of wholesale data center Built-to-suit p
Slide 16: Green Mountain Global - Powered Land Bank Samples
Green Mountain Global - Global Data Center Operations Powered Land Bank Samples )1( Undheim Site Honefoss Site Campus Large-scale opportunity in south-west Norway Large-scale opportunity in capital region of Norway Overview Land Owned Owned Size of plot 60.000 sqm 76.000 sqm Maximum Sellable IT Powe
Slide 17: Green Mountain Global - Capacity and NOI Development
Green Mountain Global - Global Data Center Operations MW-בdevelopment Active annual capacity )1(חוזים חתומים פעיל לפי based תפוקה שנתי on bookings(1) in קצב MW,התפתחות excluding potential additional contracts לא כולל חוזים נוספים פוטנציאליים 170 * 170 170 170 170 100% CAPACITY 152 7 20
Slide 18: Hamar Project – OSL2
Hamar Project – OSL2 Expansion Option #2 Building A | 30MW Expansion Option #1 Building B | 30MW Building C | 30MW 18 Investor Presentation, June 2025
Slide 19: Mainz Project – FRA1
Mainz Project – FRA1 Module West 18MW Module Middle 18MW Expansion Option 18MW 19 Investor Presentation, June 2025
Slide 20: Palace Senior Housing Chain
Palace Senior Housing Chain Book value Palace Palace Approx. NIS 4.2 billion Tel Aviv Modi’in 231 +4 239 +4 Apartments Medical units Apartments Medical units Average occupancy rate 98% )2( Palace Palace Ra’anana Lehavim 321 +2 350 +2 NOI in Q2/2025 Apartments Medical units Apartments Medical units N
Slide 21: Properties Under Construction
Properties Under Construction 21 Investor Presentation, June 2025
Slide 22: Development Pipeline
Development Pipeline Holon Tel Aviv Tel Aviv Jerusalem Ramat HaSharon Project 3 Expansion of Azrieli Center and Palace Sde Dov Senior Mount Zion Hotel SolarEdge Spiral Tower Home ~250,000 sqm ~150,000 sqm)3( ~42,000 sqm)3( ~34,000 sqm)2( ~43,000 sqm Rishon LeZion Tel Aviv Herzliya Modi’in Petach Tik
Slide 23: Development Projects: Growth Driver
Development Projects: Growth Driver Use Estimated Completion Estimated Construction Cost, Property Name Location GLA (2) Including Land (NIS in millions)(1) Date Palace Rishon LeZion Rishon LeZion 37,300 2025 540-560 Modi’in, Lot 10 Modi’in 37,000 2026 570-580 Short & Medium SolarEdge Campus Ramat H
Slide 24: Development Projects: Expected Contribution to NOI and FFO
Development Projects: Expected Contribution* to NOI and FFO (NIS in millions) NOI (NIS millions) Actual NOI in Q2/2025, annualized 2,592 3,104 Additional NOI from DC segment based on signed contracts** 127 2,592 Addition from newly occupied properties during the period and discounting the effects of
Slide 25: Tel Aviv's Central Business District (CBD)
Tel Aviv’s Central Business District (CBD) Income-Producing 1 Azrieli Center 2 2 Azrieli Sarona 5 1 3 Azrieli Town, Offices 4 Azrieli Town, Rental Housing 4 Under construction and 3 under planning 5 Expansion of 6 Azrieli Center and Spiral Tower 6 Azrieli Town Building E 25 Investor Presentation, Ju
Slide 26: Expansion of Azrieli Center and Spiral Tower in Tel Aviv
Development Projects / Expansion of Azrieli Center and Spiral Tower in Tel Aviv Area GLA Land cost (1) ~ 8,400 sqm 150,000 sqm NIS ~374 million Estimated construction Uses Estimated completion date cost, including land NIS 3.0-3.2 2028 billion מלון Hotel מסחר Retail משרדים Offices Housing דיו
Slide 27: Expansion of Azrieli Center and Spiral Tower in Tel Aviv
Development Projects / Expansion of Azrieli Center and Spiral Tower in Tel Aviv 27 Investor Presentation, June 2025
Slide 28: Development Projects / Lot 10, Modi'in
Development Projects / Lot 10, Modi’in 8,100m2 ±37,000m2 Clalit Office and Medical Retail )1( Center (included in the office and retail areas) Connection to the mall A bustling center with and the preexisting office and retail buildings and movie theaters center (1) The Company promoted a plan to ad
Slide 29: Development Projects / Glil Yam – Rental Housing
Development Projects / Glil Yam – Rental Housing Land area Estimated cost of ~147 Apt. ~ 5,200 m2 Highway 2 construction including land and other retail space over two adjacent lots NIS 380-400 million 2 Lots Uses Land price per Apt. Estimated completion date Highway 20 approx. NIS 710 Retail Housin
Slide 30: Development Projects / Mount Zion Hotel – Jerusalem
Development Projects / Mount Zion Hotel – Jerusalem Planned built-up area Land area Acquisition cost according to approved zoning plan ⁓13,000 sqm NIS ~275 million 34,000 sqm (1) up to 350 rooms Estimated construction cost The Group intends to remodel Estimated completion date the hotel to NIS 710-7
Slide 31: Development Projects / Sde Dov Senior Home
Development Projects / Sde Dov Senior Home Award of the Sde Dov tender Land area On 19 February 2025, the Company ~4,500 sqm won ILA’s tender for acquisition of leasehold rights to a lot in Tel Aviv, for construction of a senior home project and retails areas. Einstein Estimated cost of project Proj
Slide 32: ESG / Environment
ESG / Environment 5 properties are LEED certified 14 properties 350 meters tall, 91 floors are LEED O&M certified 19 properties Implement a landfill waste reduction program 50% Target for the reduction of landfill waste by 2026 10 properties UN Sustainable have social recycling sites in Development
Slide 33: ESG / Environment
ESG / Environment 35-meters tall 91 floors Azrieli Group’s flagship State-of-the-art shading project system Solar panels The world’s largest project to use recycled aluminum The world’s first supertall Innovative and efficient AC building with a façade made system entirely of recycled aluminum 33 In
Slide 34: ESG / Environment
ESG / Environment Sarona Tower has been certified LEED v5 O+M Platinum International project • One of only 11 projects in the world to be awarded this certification • The first project in the Middle East and North Africa to receive this certification Carbon emission reduction • Reduction of greenhou
Slide 35: ESG / Society
ESG / Society Swords of Iron Partnering with the Following the Swords of Iron war, and as part of Azrieli Community Group’s ESG strategy, it rallied to support the Israeli • Projects for the community focusing on themes related to our core business, such as building community gardens in people and b
Slide 36: ESG / Corporate Governance
ESG / Corporate Governance Gender diversity on the Board 5 out of the 10 members of Azrieli’s board are women, making up 50% of the First Rate • board. • The board’s chair is a woman. Achievement! Code of Ethics Azrieli Group joins Maala • Based on our values and vision, it serves as a compass for t
Slide 37: Financials
Financials 37 Investor Presentation, June 2025
Slide 38: Constant NOI Growth
Constant NOI Growth NOI compared with previous years and Q2/2024 NOI (NIS in millions) NOI (NIS in millions) )1( 9% 2,302 17% 648 19 7 2,113 230 15 1,953 154 87 553 115 4 92 41 72 133 43 60 110 25 22 1,611 1,590 111 24 22 1,523 10 37 53 1,385 37 139 48 865 1,301 149 122 1,238 39 821 29 121 1,214 769
Slide 39: Constant FFO Growth
Constant FFO Growth FFO (Management’s method)(2) compared with previous years and Q2/2024 FFO (Management’s Method) Attributable to Real Estate Business (1) (2) (NIS in millions) 1,709 119 )3( 1,481 )3( 1,378 103 1,318 )3( 431 425 1,313 1,278 85 40 8 153 166 165 1,053 1,007 999 923 45 54 417 391 9 1
Slide 40: Dividend Distribution / Consistent and on the Rise
Dividend Distribution / Consistent and on the Rise NIS 800 million in dividend distributions in respect of 2024 )1( 1,000 1,000 8.25 8.50 900 800 800 7.50 700 700 650 6.50 600 600 560 6.60 520 500 480 5.77 5.50 400 5.36 400 4.50 320 300 4.95 265 280 4.29 4.62 300 240 240 3.96 3.50 200 3.30 2.50 100
Slide 41: Leverage Ratio, Duration and Cost of Debt
Leverage Ratio, Duration and Cost of Debt Extension of Average Duration of Debt (2) Financial Strength)1( 6.4 6.1 • Low leverage ratio – net financial debt to assets: ~37% 6.0 5.8 5.3 5.3 5.5 • Equity to assets: ~41% 4.1 4.5 4.4 • Cash and cash equivalents: NIS ~2.64 billion 3.3 (approx. NIS 4.8 bil
Slide 42: Payment Schedule (Principal Only)
Payment Schedule (Principal Only) On a consolidated basis as of 3042June 2025 10,922 ■ Lenders – overseas operations ■ Bonds ■ Long-term banks and institutional bodies ■ CP 10,710 3,471 3,110 92 27 2,455 2,294 1,809 1,868 60 1,495 746 92 1,424 1,216 724 1,899 1,719 1,570 1,588 1,688 1,162 46 419 335
Slide 43: Summary of Financial Statement Results
Summary of Financial Statement Results (NIS in millions) Consolidated Consolidated Consolidated Q2/2025 Q2/2024 2024 Revenues from rent, maintenance and management fees and sales 949 781 3,281 NOI 648 553 2,302 Same-property NOI 576 553 - FFO (Management’s method) attributed to the real estate busin
Slide 44: Summary of Balance Sheet Figures
Summary of Balance Sheet Figures (NIS in millions) Consolidated Consolidated June 30 2025 31 December 2024 Cash, securities and deposits 2,644 4,634 Gross financial debt 26,760 25,894 Net financial debt (1) 21,926 19,744 Net financial debt to assets 37% 34% Financial assets (mostly Bank Leumi shares
Slide 45: Average Cap Rate and FFO / Income-Producing Real Estate Business
Average Cap Rate and FFO / Income-Producing Real Estate Business FFO(2) (management's method) for Q2/2025 attributed to the real estate business – NIS 425 million Weighted average cap rate – 6.99% Q2/202 NIS in millions NIS in millions Q2/2025 4 NOI 648 553 Total investment real estate as of 30 June
Slide 46: Recap / Leadership, Innovation and Strength
Recap / Leadership, Innovation and Strength The key parameters of the core Strength and exceptional business (NOI, FFO) financial resilience demonstrate continuous growth The Company’s operations High occupancy rates are predominantly in Israel over time Significant Growth Drivers: • Organic growth
Slide 47: Thank You
Thank You 47 Investor Presentation, June 2025