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

About Gazit-Globe

Gazit-Globe is one of the largest owners and operators of supermarket-anchored shopping centers in the world. In addition, the Company is active in North America in the healthcare real estate sector. Gazit-Globe is listed on the New York Stock Exchange (NYSE:GZT) and the Tel Aviv Stock Exchange (TASE:GLOB) and is included in the TA-25 and Real-Estate 15 indices in Israel. Gazit Globe owns and operates over 600 properties in more than 20 countries, with a gross leasable area of approximately 6.8 million square meters and a total value of more than $20 billion.

FOR ADDITIONAL INFORMATION

A comprehensive copy of the Company's annual report is available on Gazit-Globe website at www.gazit-globe.com

Investors Contact: IR@gazitgroup.com, Media Contact: press@gazitgroup.com

Gazit-Globe Headquarters, Tel-Aviv, Israel, Tel: +972 3 6948000

FORWARD LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of the U.S. federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside our control, that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks detailed in our public filings with the SEC. Except as required by law, we undertake no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise.

Some historical numbers were retroactively adjusted due to new accounting standards

Exchange rate as of December 31, 2012 of 1 USD = 3.733 NIS

Below please find excerpts from our 2012 Annual Report. For our full 2012 Annual Report in English, please go to http://www.gazitglobe.com/financial-reports .

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
       
  December 31, January 1,
  2012 *) 2011 *) 2011
  NIS in millions
ASSETS      
       
CURRENT ASSETS      
Cash and cash equivalents 1,683 1,539 692
Short-term investments and loans 538 770 150
Marketable securities at fair value through profit or loss 87 97 50
Available-for-sale financial assets 14 67 42
Financial derivatives 81 84 110
Trade receivables 744 656 126
Other accounts receivable 216 291 202
Inventory of buildings and apartments for sale 712 697 --
Income taxes receivable 15 14 68
       
  4,090 4,215 1,440
Assets classified as held for sale 1,482 714 50
       
  5,572 4,929 1,490
       
NON-CURRENT ASSETS      
Equity-accounted investees 4,713 4,390 3,694
Other investments, loans and receivables 713 308 117
Available-for-sale financial assets 339 314 218
Financial derivatives 929 937 1,087
Investment property 55,465 51,014 41,242
Investment property under development 2,806 2,198 2,266
Non-current inventory 23 23 --
Fixed assets, net 187 157 99
Goodwill 100 101 110
Other intangible assets, net 17 68 10
Deferred taxes 198 160 75
       
  65,490 59,670 48,918
       
  71,062 64,599 50,408
       
*) Retroactively adjusted due to adoption of new IFRS standards.
 
 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
       
  December 31, January 1,
  2012 *) 2011 *) 2011
  NIS in millions
LIABILITIES AND EQUITY      
       
CURRENT LIABILITIES      
Credit from banks and others 351 453 91
Current maturities of non-current liabilities 2,382 3,525 2,719
Financial derivatives 12 25 37
Trade payables 914 819 302
Other accounts payable 1,256 1,218 842
Advances from customers and buyers of apartments 257 277 --
Income taxes payable 52 53 33
       
  5,224 6,370 4,024
Liabilities attributed to assets held for sale 168 103 --
       
  5,392 6,473 4,024
       
NON-CURRENT LIABILITIES      
Debentures 18,500 15,379 13,768
Convertible debentures 1,197 1,121 739
Interest-bearing loans from financial institutions and others 19,433 18,973 14,644
Financial derivatives 472 339 128
Other financial liabilities 346 277 161
Employee benefit liability, net 7 8 2
Deferred taxes 3,066 2,401 1,751
       
  43,021 38,498 31,193
       
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY      
Share capital 219 218 208
Share premium 3,805 3,787 3,474
Retained earnings 4,699 3,904 3,422
Foreign currency translation reserve (913) (728) (1,313)
Other reserves 60 150 220
Loans granted to purchase shares of the Company **) -- **) -- (4)
Treasury shares (21) (21) (21)
       
  7,849 7,310 5,986
Non-controlling interests 14,800 12,318 9,205
       
Total equity 22,649 19,628 15,191
       
  71,062 64,599 50,408
       
*) Retroactively adjusted due to adoption of new IFRS standards.
**) Represents an amount of less than NIS 1 million.
 
 
CONSOLIDATED STATEMENTS OF INCOME
       
  Year ended December 31,
  2012 *) 2011 *) 2010
  NIS in millions (except for per share data)
Rental income 5,249 4,718 4,147
Property operating expenses 1,705 1,522 1,341
       
Net operating rental income 3,544 3,196 2,806
       
Revenues from sale of buildings, land and construction works performed 1,749 1,001 --
Cost of buildings sold, land and construction works performed 1,665 967 --
       
Gross profit from sale of buildings, land and construction works performed 84 34 --
       
Gross profit 3,628 3,230 2,806
       
Fair value gain from investment property and investment property under development, net 1,913 1,670 935
General and administrative expenses (648) (733) (569)
Other income 164 115 21
Other expenses (47) (110) (46)
Group's share in earnings of equity- accounted investees, net 299 334 171
       
Operating income 5,309 4,506 3,318
       
Finance expenses (2,214) (2,197) (1,764)
Finance income 120 72 525
       
Income before taxes on income 3,215 2,381 2,079
Taxes on income 681 328 390
       
Net income 2,534 2,053 1,689
       
Attributable to:      
Equity holders of the Company 957 719 831
Non-controlling interests 1,577 1,334 858
       
  2,534 2,053 1,689
       
Net earnings per share attributable to equity holders of the Company:      
Basic net earnings 5.80 4.65 5.89
       
Diluted net earnings 5.59 4.30 5.87
       
*) Retroactively adjusted due to adoption of new IFRS standards.
 
 
FFO (EPRA Earnings)
 
The table below presents the calculation of the Company's FFO, computed according to the directives of EPRA and the guidelines of the Israel Securities Authority, and its FFO per share for the stated periods:
 
  For the year ended December 31 For the 3 months ended December 31
  2012 *) 2011 *) 2010 2012 *) 2011
  NIS in millions (other than per share data)
           
Net income attributable to equity holders of the Company for the period 957  719  831  224  269 
Adjustments:          
Fair value gain from investment property and investment property under development, net (1,913) (1,670) (935) (441) (843)
Capital loss (gain) on sale of investment property and investment property under development 63  (13) 22 
Impairment of goodwill --  38  42  --  38 
Changes in the fair value of financial instruments, including derivatives, measured at fair value through profit and loss (36) 179  (474) (147) 74 
Adjustments with respect to equity-accounted investees (43) (131) 77  (7)
Loss from decrease in interest in investees -- 
Deferred taxes and current taxes with respect to disposal of properties 668  324  382  228  149 
Gain from bargain purchase (134) (102) --  --  (18)
Acquisition costs recognized in profit and loss 26  21  21  (3)
Loss from early redemption of interest-bearing liabilities 147  14  132  21 
Non-controlling interests' share in above adjustments 685  646  273  83  337 
Nominal FFO 366  102  141  171  39 
Additional adjustments:          
CPI and exchange rate linkage differences 94  133  115  (40) (15)
Depreciation and amortization 16  15  14 
Adjustments with respect to equity-accounted investees 67  (9) (13) 30 
Other adjustments 1 55  88  98  15  53 
FFO according to the management approach 533  405  359  137  111 
FFO according to the management approach per share (in NIS) 3.23  2.62  2.54  0.83  0.71 
Number of shares used in the FFO calculation 2 (in thousands) 164,912  154,456  141,150 165,136 155,817
           
*)  Retroactively adjusted due to the adoption of new IFRS standards.  
1Income and expenses adjusted against the net income for the purpose of calculating FFO, which include the adjustment of expenses and income from extra ordinary legal proceedings not related to the reporting periods, expenses arising from one-time payments relating to the termination of engagements with senior Group officers and also income and expenses from operations not related to income-producing property, also, with regard to the periods that are presented in 2011 and 2010 above, the data include the adjustment of income from the waiver of the bonus and the compensation with respect to the expiration of the employment agreement of the Chairman of the Board of Directors.
2Number of issued shares (weighted average for the period).

Exchange rate as of December 31, 2012 of 1 USD = 3.733 NIS

CONTACT: Gazit-Globe Ltd.
         1 HaShalom Rd.
         Tel Aviv, Israel 67892
         +972 3 694 8000
         
         For additional information:
         Gil Kotler,
         Senior Executive VP and CFO

Gazit-Globe Logo

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