Azrieli Group Releases Q1/2023 Results - Seite 2

Occupancy Rates and Store Revenues

• The average occupancy rate (excluding properties under lease-up) was 99% in malls, 98% in offices in Israel, and 97% in senior housing.
• Store revenues – In January-March 2023, a 14.2% increase was recorded in store revenues in the Group's malls year-over-year.

Recent Business Developments

• In March 2023, the Group announced a significant data center transaction under which Green Mountain, a wholly-owned subsidiary, will build a DC campus for TikTok, comprised of a number of buildings in which the customer will be supplied with a total power capacity (electricity) of 90 MW. The campus will be built in several stages, and during Q4/2023 the first 30 MW are expected to be supplied under an 11-year contract. The remaining 60 MW of the capacity will be supplied during 2024 in two additional stages under 10-year contracts. The customer was given several options for increasing the capacity by tens of MW. The transaction is expected to produce an average annual NOI of approx. $79 million, assuming its full operation (90 MW).
• In April 2023, the Group announced that Green Mountain, the wholly-owned subsidiary which engages in the data centers sector, had entered into a joint venture with a German company which engages in the supply of power and energy for the construction of a DC campus that shall comprise several buildings in the Frankfurt region of Germany. The joint venture will be held and financed in equal shares. On the land where the campus will be built, three buildings may be built, such that the maximum capacity on the campus may reach around 54 MW. During Q3/2023, the joint venture is expected to begin construction of the first building with a designed power capacity of around 18 MW.
• In April 2023, the Group announced that it had won a tender of Dira Lehaskir and the ILA in the Glil Yam neighborhood of Herzliya. This is Azrieli Group’s first tender under the Dira Lehaskir model. The project, which is situated near Kibbutz Glil Yam, comprises 147 apartments intended for long-term housing for a period of no less than 20 consecutive years from the date of completion of the construction, while one half of the apartments in the project will be rented for price-controlled rent, which will be 80% of market-rate rent.
• In April 2023, the Group announced that it had entered into an agreement for the acquisition of the Red Rock Hotel in Eilat. Azrieli will acquire all of the rights in the land of a total area of around 9,000 sqm on which the hotel is built, including existing and future building rights. The Company intends to work towards exercise of the building rights for the construction of a new hotel.

Balance Sheet as of March 31, 2023