Azrieli Group Reports Q4/2023 and Y2023 Results

For the first time, the annual NOI and net profit have crossed the NIS 2 billion mark

In Y2023, NOI was up some 8%, totaling around NIS 2,113 million; net of a one-time expense for the relief given to tenants, NOI would have been NIS 2,148 million – up 10%

FFO in Y2023 was up some 7% totaling around NIS 1,461 million; FFO (excluding senior housing) in Y2023 was up some 7% totaling around NIS 1,358 million

Following the closing of the transaction for the sale of Compass, the Group increased the planned dividend, and will distribute approx. NIS 1 billion

Danna Azrieli, Chairwoman of Azrieli Group: “2023 was a challenging year for Israeli society, even before the outbreak of the Iron Swords War. Despite this, we are ending the year with continued growth in all of the parameters, and we view this as tangible evidence of the leadership and strength of the Group. Especially during these times, we endeavor to maintain economic, business and social robustness and continuity, rooted in our solid faith in the Israeli economy and society, while looking ahead to the future development of the Group’s business areas.

“This year, we presented an NOI of approx. NIS 2.1 billion in our financial statements, constituting an increase of approx. 31% in the past 5 years, and representing the long and successful road we have travelled over this period, including improved performance in all segments.

“Azrieli Group is committed to continuing to build Israel and continuing to develop projects in Israel and expand existing projects, totaling over 1 million sqm, while taking a conservative and responsible approach as we have always done. We are vigorously moving forward with the construction of the Spiral Tower, our flagship project, which is expected to change the skyline of Tel Aviv, and in the coming days we will launch an innovative and exciting project in the CBD of Modi’in, which best reflects the Azrieli Group’s characteristic mixed-use concept of recent years.

“Since the outbreak of the Iron Swords War, we have given millions of shekels in aid and donations and thousands of hours of volunteering in a variety of activities, to support the community and the people at this critical time for the State of Israel. We hope for better days, for the safe return of the security forces, and for the release of all of the hostages”.

Eyal Henkin, CEO of Azrieli Group: “We are ending a year full of activity and continued growth, with the relief given to the tenants of our malls due to the Iron Swords War having had a relatively moderate impact on the Q4 results. We are presenting good results for 2023, despite the relief that was given, and we view this as strong evidence of the caliber of the Company and its properties. We are proud of our ability to maintain this strength, even in such uncertain circumstances. The Group’s operations in the malls and offices segments presented good results and high occupancy rates over the year and, net of the relief we gave to tenants, the growth in 2023 is in double digits in the key parameters. The data center segment continues to gain momentum through our subsidiary Green Mountain and to constitute a significant growth engine. We are identifying many opportunities in the sector and we believe in our ability to create significant value for our shareholders in this industry, alongside the many initiatives that we are continuing to promote in the Group’s other core businesses.”