Azrieli Group Releases Q1/2023 Results

NOI in Q1 is up 15% year-over-year, totaling some NIS 525 million

Same Property NOI in Q1 is up around 9%

FFO (excluding senior housing) in Q1 is up 8% totaling some NIS 335 million. Total FFO is up 4% at around NIS 350 million

Financial Highlights for Q1/2023

• NOI in Q1 totaled some NIS 525 million, up around 15% year-over-year. The increase mainly derives from the acquisition of Mall Hayam together with rent increases in malls, offices and data centers.
• Same Property NOI was up around 9% in Q1.
• FFO excluding senior housing totaled some NIS 335 million in Q1 compared with around NIS 310 million year-over-year, up some 8%. In Q1, the total FFO was approx. NIS 350 million, compared with around NIS 337 million year-over-year, up some 4%.
• Net profit attributable to the shareholders totaled approx. NIS 377 million in Q1 compared with around NIS 336 million year-over-year. Comprehensive income totaled some NIS 330 million in Q1 compared with around NIS 484 million year-over-year.

TEL AVIV, Israel, May 24, 2023 (GLOBE NEWSWIRE) -- Eyal Henkin, CEO of Azrieli Group, said:

“We are closing another quarter with continued growth in all parameters. The Group’s operations in the malls and offices segments are continuing to present good growth and high occupancy rates. The data centers operations are continuing to gain momentum, and its contribution to the business is growing. During the quarter, the Company reported two significant transactions in the segment. Recently we also announced the expansion of our operations in the long-term rental housing segment with our winning a tender for the construction of a long-term rental housing project in the desirable and developing Glil Yam neighborhood in Herzliya. We intend to develop a high-quality premium product that offers services similar to the standard offered in the U.S. and to become a significant player in the segment. In the hospitality segment we recently acquired the Red Rock Hotel in Eilat, which is situated in a strategic location on the city’s shoreline.

“Alongside the continued strengthening of the Group’s core operating segments and the investment in new growth engines, we are working on identifying business opportunities, alongside responsible and well-balanced behavior. This period of uncertainty emphasizes and highlights the Group’s strength and the importance of such behavior.”