Azrieli Group Releases Q2/2023 Results

NOI in Q2 is up 18% year-over-year, totaling some NIS 559 million

Same Property NOI in Q2 is up around 8%

FFO (excluding senior housing) in Q2 is up 11% totaling some NIS 342 million. Total FFO is up 8% totaling some NIS 357 million

Towards the end of Q2, the Company reported the sale of its holdings in Compass for a gross consideration of approx. NIS 3.2 billion. Upon the closing of the transaction, the cash flow profit on the investment (before tax and transaction expenses) is expected to be approx. NIS 2 billion

Financial Highlights for Q2/2023

• NOI in Q2 totaled some NIS 559 million, compared to approx. NIS 473 million year-over-year, up some 18%. 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 8% in Q2.
• FFO excluding senior housing totaled some NIS 342 million in Q2 compared with around NIS 309 million year-over-year, up some 11%.In Q2, the total FFO was approx. NIS 357 million, compared with around NIS 331 million year-over-year, up some 8%.
• Net profit attributable to the shareholders totaled approx. NIS 419 million in Q2 and Comprehensive income totaled some NIS 512 million in Q2. Q2/2022 included significantly higher revaluation profits.

TEL AVIV, Israel, Aug. 17, 2023 (GLOBE NEWSWIRE) -- Eyal Henkin, CEO of Azrieli Group, said:

“We are closing another strong quarter with continued growth in all operating parameters. The Group’s operations in the malls and offices segment presented good results and high occupancy rates. Notwithstanding the uncertainty in the economic environment and the significant challenges, we believe that the location, quality and distinction of the Group's properties will allow us to maintain high occupancy rates.

“In the data centers segment, we recently reported a significant transaction for the sale of the Group's minority holdings in Compass with a high yield and a profit of billions of shekels. The Group's data centers sector continues to be a significant growth engine and we intend to expand this activity, through Green Mountain.

“Alongside the continued focus on the Group’s core operating segments and the investment in new growth engines, we constantly continue to conduct ourselves responsibly while maintaining a strong balance sheet and high financial stability. This period of uncertainty emphasizes and highlights the Group’s strength and the importance of such behavior.”