Azrieli Group Releases Q2/2023 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-June 2023, a 8.1% increase was recorded in store revenues year-over-year, which included the Omicron wave (the increase does not include store revenues of Mall Hayam in Eilat and the retail space in Azrieli Town Tel Aviv). In March-June, 2023, an increase of 4.5% was recorded in the Group's malls year-over-year.

Recent Business Developments

• In June 2023, the Group reported that its partners in the U.S. company Compass informed it that they had engaged in an agreement for the sale of their holdings in the company, in an amount reflecting a company valuation of $5.7 billion. In accordance with the mechanisms stipulated in the agreement with the partners, Azrieli Group decided to join the sale transaction, and will sell its minority holdings in Compass according to the same valuation. Subject to the closing of the transaction, the Group is expected to receive a gross consideration of approx. NIS 3.2 billion. If and to the extent that the transaction is closed, the estimated cash flow profit on the investment (before tax and transaction expenses) to be recorded by Azrieli is approx. NIS 2 billion and an accounting profit (before tax and transaction expenses) of approx. NIS 1.3 billion. The said sale reflects an annual IRR in shekels of 40.4% .
• After the balance sheet date, the Company completed a bond offering by way of expansion of Series B and raised approx. NIS 850 million.

Balance Sheet as of June 30, 2023

• The Group has cash, deposits, and short-term investments totaling approx. NIS 1.25 billion, and together with Bank Leumi stock, cash and cash equivalents and marketable securities – around NIS 2.25 billion.
• Net debt (including Leumi) totals approx. NIS 17.5 billion.
• The value of investment property and investment property under construction totals approx. NIS 42 billion.
• The equity to assets ratio is approx. 45% and the net debt to assets ratio is approx. 37%.
• Unencumbered assets total approx. NIS 35 billion.