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Gazit-Globe Reports Year-End And Fourth Quarter 2012 Financial Results

Total Investments of NIS 5.7 Billion During 2012

FFO and FFO Per Share Grew by 32 % and 23 % Respectively, Same Property NOI Grew by 3.9 %  

TEL-AVIV, Israel, March 20, 2013 (GLOBE NEWSWIRE) -- Gazit-Globe (TASE:GLOB) (NYSE:GZT), one of the world's leading multi-national real estate companies focused on acquisition, development and redevelopment of supermarket-anchored shopping centers announced today its financial results for the year and the fourth quarter ended December 31, 2012.

References to the "Group" relate to Gazit-Globe's consolidated statements. References to the "Company" relate to Gazit-Globe's stand-alone financial statements. Unless otherwise stated, financial information included in this press release relates to the "Group".

Highlights:

  • NOI for the year increased by 11% to NIS 3,544 million (US$ 949 million) compared to NIS 3,196 million (US$ 856 million) in 2011
  • FFO for the year increased by 32% to NIS 533 million (US$ 143 million), or NIS 3.23 per share (US$0.87), as compared to NIS 405 million (US$ 108 million), or NIS 2.62 per share (US$ 0.70), in 2011
  • Investments during the year totaled NIS 5.7 billion (US$1.5 billion). The group also recycled capital from the divesture of non core assets in the amount of NIS 1.5 billion (US$ 0.4 billion), and sold the majority of its senior housing platform for a total of NIS 0.9 billion (US$ 0.23 billion)
  • Same Property NOI for the year grew by 3.9% compared to 2011 and occupancy rate as of December 31, 2012 increased to 95.0% from 94.3% as of December 31, 2011
  • Shareholders' equity as of December 31, 2012 totaled NIS 7,849 million (US$ 2,103 million), or NIS 47.5 per share (US$ 12.72), as compared to NIS 7,310 million (US$1,958 million), or NIS 44.4 per share (US$ 11.89), as of December 31, 2011
  • EPRA NAV per share as of December 31, 2012 was NIS 56.9 (US$ 15.24) compared to NIS49.4 per share (US$ 13.23) as of December 31, 2011
  • As of December 31, 2012, the Group had cash on hand and unutilized revolving credit facilities in the amount of NIS 8.2 billion (US$ 2.2 billion) of which NIS 2.6 billion (US$ 0.7 billion) is at the level of the Company and its fully owned subsidiaries
  • As of December 31, 2012, net debt to total assets (LTV) was 56.1%, compared to 58.0% as of December 31, 2011
  • The Company's Board of Directors declared a quarterly cash dividend of NIS 0.43 per share (US$ 0.12) payable on April 21, 2013 to shareholders of record as of April 7, 2013, which represents an annualized dividend per share of NIS 1.72 (US$ 0.46)

"During the year our business continued to benefit from favorable trends in many of our key markets, including the U.S., Canada and Europe. Our focus on investing and developing properties in densely-populated urban areas that are supply-constrained and have appealing demographics drove our strong financial performance, including 32% year-over-year increase in FFO and 23% increase in FFO per share." said Roni Soffer, President of Gazit-Globe "We also strengthened and delevered our balance sheet, and continued to recycle capital within the group, while issuing significant amounts of equity and long term debt. The Group has a high quality portfolio and we are well positioned for growth over the long term as we continue to seize opportunities in the various territories in which we operate."

Financial Highlights for 2012:

  • Rental income increased by 11% to NIS 5,249 million compared to NIS 4,718 million in 2011
  • NOI for the year increased by 11% to NIS 3,544 million compared to NIS 3,196 million in 2011
  • FFO for the year increased by 32% to NIS 533, or NIS 3.23 per share, as compared to NIS 405 million, or NIS 2.62 per share, in 2011
  • Net income attributable to the Company's shareholders for the year totaled NIS 957 million, or NIS 5.59 per share, compared to NIS 719 million, or NIS 4.30 per share, in 2011
  • Cash flow from operating activities totaled NIS 1,393 million, compared to NIS 1,126 million in 2011
  • Same-property NOI grew by 3.9%, resulting from an increase of 2.3% in the same-property NOI from North America, a 5.8% increase in same-property NOI from Europe and a 3.5% increase in same-property NOI from Israel
  • ccupancy rate as of December 31, 2012 increased to 95.0% from 94.3% as of December 31, 2011. Occupancy rate as of December 31, 2012 was 94.1% in North America, 96.5% in Europe and 98.6% in Israel
  • The fair value gain from investment property and investment property under development was NIS 1,913 million compared to NIS 1,670 million in 2011

Financial Highlights for the three months ended December 31, 2012:

  • Rental income increased by 10% to NIS 1,370 million compared to NIS 1,248 million in the fourth quarter 2011
  • NOI increased by 7% to NIS 911 million compared to NIS 851 million in the fourth quarter 2011
  • Proportional consolidated NOI increased by 3% to NIS 531 million, compared to NIS 517 million in the fourth quarter 2011
  • FFO increased by 23% to NIS 137 million, or NIS 0.83 per share, as compared to NIS 111 million, or NIS 0.71 per share, in the fourth quarter 2011
  • Net income attributable to the Company's shareholders totaled NIS 224 million, or NIS 1.34 per share, compared to NIS 269 million, or NIS 1.54 per share, in the fourth quarter 2011
  • Cash flow from operating activities totaled NIS 430 million, compared to NIS 234 million in the fourth quarter 2011
  • The fair value gain from investment property and investment property under development was NIS 441 million compared to NIS 843 million in the fourth quarter 2011

Acquisition, Development and Redevelopment Activities:

During the year, the Group acquired 30 income-producing properties totaling 224 thousand square meters and adjacent land parcels for future development in a total amount of NIS 3,836 million. The Group also invested an amount of NIS 1,856 million in new development and redevelopment projects.

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