GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
INVESTOR PRESENT ATION
September 2020
1
INVESTOR PRESENT ATION September 2020 GREAT THINGS HAPPEN WHEN YOU - - PowerPoint PPT Presentation
INVESTOR PRESENT ATION September 2020 GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE 1 ABOUT US GAZITGLOBE GLOBAL PRESENCE (1) Gazit globe is a leading global real estate company focused mainly on the ownership, management and development
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
INVESTOR PRESENT ATION
September 2020
1
Nordics, 21% CEE, 26% US & Canada, 12% Israel2, 24% Brazil, 15% Germany, 2%
GLOBAL PRESENCE (1)
Information in the presentation is as of June 30, 2020, unless otherwise stated. NIS/USD exchange rate as of June 30, 2020 1$=NIS 3.47 (1) Based on market value as of June 30, 2020. (2) Including investments in Bulgaria and Macedonia.
Gazit globe is a leading global real estate company focused mainly on the ownership, management and development of income-producing properties for mixed use including retail, office and residential located in densely populated urban cities
PROPERTIES
MILLION SQM
ASSETS VALUE
WITH A TOTAL OF
GAZITGLOBE
2
INVESTMENT PORTFOLIO 15.6 BILLION NIS
GAZITGLOBE
Figures represented are as of June 30, 2020 unless otherwise specified and include rounding adjustments. (1) Citycon, Atrium and Horizons - including jointly controlled properties. (each one). GAZIT TRIPLLLE
USD 720m (NIS 2.5b)
Investment
7 Assets USD 490m (NIS 1.7b)
Investment
11 Assets (1)
GAZIT HORIZONS
DIRECT INVESTMENTS NIS 8.0 BILLION
GAZIT BRASIL
100%
Owned
100%
Owned
100%
Owned
USD 72m (NIS 0.25b)
Investment
11 Assets (2)
60%
Owned
BILLION NIS
G CITY | RISHON LETZION
USD 1.2b (NIS 4.2b)
Investment
31 Assets(1) USD 1.0b (NIS 3.4b)
Investment
41Assets(1)
EUROPEAN SUBSIDIARIES NIS 7.6 BILLION
NORDICS ACQUIRED 2004 CENTRAL EASTERN ACQUIRED 2008
48.9%
Owned
67.1%
Owned
5 Assets
3 USD 1,008m (NIS 3.5b)
Investment
11 Assets
GAZIT ISRAEL
*Company share in group NOI As of June 30, 2020.
Geographic Diversification Based on Proportionate NOI*:
Tenant Mix Based on Proportionate NOI*
Million visitors annually
Lease agreements in the Group
# of assets As of June 30, 2020 Supermarkets in the Portfolio
Contribution of the largest tenant in the Group according to proportionate NOI
~1.7%
79% Of Gazit’s Assets Are Located In 15 Metropolitan Areas.
Tel Aviv Boston New York Warsaw Prague Stockholm Sao Paulo Helsinki
Quality Assets Portfolio that Incorporates Partially Open-Air Assets in Densely Populated Urban Areas, Not relied On Dominant Tenants.
Israel 16% U.S 5% Norway 12% Sweden 9% Finland & Estonia 15% Poland 18% Czech 6% Slovakia 2% Russia 7% Germany 1% Brazil 8% Canada 1% Supermarket, Drugstores 16% Banks, Clinics, Offices, Services 16% Apparel 30% Cafe & Resturants 10% Non Apparel Retail 20% Entertainment 5% DIY, Home Furniture 3%
During COVID-19 55% of the group’s GLA were opened to business
GAZITGLOBE
4
0.0% 10.0% 20.0%
Last Week of April Last Week of May Last Week of June Last Week of July
Source: Google’s Community Mobility Reports 09/08/2020 The basic scenario is average footfall for the period 3/1 - 6/2/2020
Consistent Footfall Growth in European Retail and Recreation Centers
January 2020 As Base
GAZITGLOBE
5
credit tenant
with USD 3.8 million
SÃO PAULO I TOP CENTER I BRASIL MANHATTAN I BRIDGE TOWER I NEW YORK
from 6.5% (2014) to 9.0% (2019)
Disposition of stabilized assets Produce of high yield over long-term from a property
Value Creation Through Acquisition
Locations
Acquisition of properties with value-add potential Pro-active management
RISHON LETZION I G CITY I ISRAEL
existing property, situated on an 80 dunam parcel owned by the Company (currently only 80,000 sq.m is improved)
within walking distance to the Moshe Dayan railway station
construct 3 additional office blocks with an additional area of 180,000 sq.m.
GAZITGLOBE
6
NEW YORK BOSTON TORONTO PHILADELPHIA MIAMI METRO TEL AVIV** SAO PAULO STOCKHOLM HELSKINI OSLO COPENHAGEN TALLIN GOTHENBURG WARSAW PRAGUE WROCLAW
9% 27% 11% 18% 14%
Focus on Major Cities in Densely Populated Areas
79% of Gazit’s Assets* are Concentrated in 15 Metropolitan Areas
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ASSETS
8
ASSETS
10
ASSETS
24
ASSETS
7
ASSETS
NEW YORK MIAMI BOSTON SÃO PAULO WROCLAW OSLO STOCKHOLM WARSAW PRAGUE HELSINKI COPENHAGEN TALLIN TEL AVIV PHILADELPHIA TORONTO
* The Company's relative share of the total value of the assets of the subsidiaries. ** Including G. Kfar Saba, G. Rishon Lezion, Savyon and two land parcels.
GAZITGLOBE
7
Average Socioeconomic Score*
Source: CBS, * Socio-Economic Index SES (Urban Interior Cluster).
GAZITISRAEL
3.4 B NIS 168K SQM
#Assets Portfolio Value
(Company’s share) 8
Excavation and deepening work is completed
G CITY OFFICE TOWER – 65,000 SQM G KFAR SABA DECATHLON STORE AND HEADQUARTERS
GAZITISRAEL
K 65 ~ SQM
ADDITION TO G CITY
* Company’s share – 25.5%
work have been completed, and the decision has been made to advance Stage A of the project –Decathlon retail and offices.
privately held, adjacent to the under-construction light rail train station (Green Line and Brown Line), and 500 square meters from the Moshe Dayan train station (Israel Railways).
9
GAZITISRAEL
G SAVION
socioeconomic score POPULATION WITHIN 1 KILOMETER AREA (THOUSANDS) 10
GAZITISRAEL
Additional building rights - 40,000 SQM*
commercial space and a plan for 21 floors office tower on top of the commercial area in the size
* Company’s share – 51% G KFAR SABA 21 STORIES OFFICE TOWER AND RETAIL EXPANSION G CITY OFFICE TOWER – FUTURE POTENTIAL
sqf).
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NORTH AMERICA
BRICKELL I MIAMI
Major upside and value creation in the existing portfolio:
international retail credit tenant, lease term is 20 years, In Annual lease payment of USD 7.2 million as compared with USD 3.8 million.
Future upside and potential for value creation in the existing portfolio:
Newbury, Boston.
1618-22 Chestnut, Philadelphia
Company is examining several scenarios for usage of the 48 stories building rights for mixed use of commercial, office, lodging and residential.
Occupancy
Focusing on gateway cities with superior demographics Value add opportunities in mixed use properties Illustration
USD MILLION
GAZITHORIZONS
Main results in the period
480 M USD 54K SQM
#Assets* Portfolio Value
(Company’s share)
5.9 14.5 6.1 7.5
12
* Including jointly controlled property (Ceaser’s Bay in Brooklyn)
DEMOGRAPHICS
ANNUAL PEDESTRIANS FOOTFALL UNDERGROUND STATION
LEGEND
MARKETPLACE CENTER I BOSTON I MA POPULATION WITHIN 3 MILES AREA (THOUSAND)
3- MILE AVG. HOUSEHOLD INCOME (THOUSAND)
GAZITHORIZONS
13
BRICKELL | MIAMI | ILLUSTRATION
OFFICE 286,000SQF
BRICKELL | MIAMI
RESIDENTIAL 760 UNITS HOTEL 352 KEYS RETAIL 560,000 SQF OFFICE 260,000 SQF
BRICKELL GATEWAY
RESIDENTIAL 438 UNITS RESIDENTIAL 450 UNITS LIGHT RAIL STATION
GAZITHORIZONS
DEVELOPMENT OF 48 STORIES BUILDING FOR MIXED USE OF COMMERCIAL, OFFICE, LODGING AND RESIDENTIAL
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CONNECTED TO THE YORK MILLS SUBWAY STATION AND REGIONAL BUS
TERMINAL MAKING IT A TRANSPORTATION HUB IN GTA
YORK MILLS CENTRE I TORONTO
POPULATION WITHIN 3 MILES AREA (THOUSANDS)
3- MILE AVG. HOUSEHOLD INCOME (TOUSANDS) POPULATION WITHIN 1 MILES AREA (THOUSANDS)
GAZITTRIPLLLE
94%
CURRENT OCCUPANCY
167 M
CAD
PURCHASE PRICE
6.7
ACRES
739
PARKING
SPACES
DEMOGRAPHICS
Covered Land Play: May be prime candidate for redevelopment in future, because
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Premium Portfolio in Urban Location Located in Sao-Paulo Business Center
Mais Shopping Fully Owned GLA: 23k sqm
2
Paulista 1267 Landbank Potential GLA: 4k sqm Prado Boulevard 98% ownership GLA: 10k sqm Located in Campinas Carrefour Building Fully Owned GLA: 3k sqm
5 7
GAZITBRASIL BRASIL
Sao-Paulo
Shopping Light Fully Owned GLA: 19k sqm
4
Morumbi Town Fully Owned GLA: 31k sqm + Landbank: 4,624 sqm
1
Top Center Fully Owned GLA: 20k sqm
3
Cidade Jardim 33% ownership GLA: 38k sqm
8
Internacional Shopping 80.1% ownership GLA: 76k sqm
6
Sao Paulo Center
16
Carrefour Building Internacional Shopping Morumbi Town Shopping Light
5 4 6 4
25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 250 500 750 1,000 1,250
São Paulo City Average: 73,000 Brazil Average: 30,000 1 2 3 4 5 6
Population within 5 km and Median Household Income
Source:Instituto Brasileiro de Geografia e Estatística (IBGE)
Irreplaceable Assets With Strong Demographics
GAZITBRASIL BRASIL
Sao-Paulo
Population within 5 km (in thousands) Median Household Income (In BRL)
Top Center Cidade Jardim Mais Shopping
2 1 3
17
Lively 3km avenue with public transportation, universities, museums, offices, residences and entertainment sites
PEDESTRIANS PER DAY
PAULISTA AVENUE
18
CITYCON & ATRIUM
Czech Republic, with Poland at 65%, 54% in Warsaw and Prague. .
portfolio of c. 5,000 residential for rent units in Warsaw and Prague, which will constitute 40% of the Company portfolio. Company has the option, to acquire the controlling stake in a future residential building with c. 900 apartments in the heart of Warsaw.
residential units total investment of approximately EUR 215 million, expected to be completed in 2022.
portfolio.
acquisitions and investment in major redevelopment/expansions
Source: Citycon’s and Atrium’s corporate presentations * Citycon - Including Kista. Atrium – Including Arkady Pankrac (75%).
EUROPEAN INVESTMENTS
# of Assets
(000’ Sqm)
(€EUR Million) # of Assets
(000’ Sqm)
(€EUR Million)
GAZITGLOBE
June 2020
153 9 17 31 27 83 2014 Jun-20 60 16 56 41 29 108 2014 Jun-20 19
DEMOGRAPHICS
PALACE OF SCIENCE & CULTURE LUMEN AND SKYLIGHT OFFICE 23,500 SQM + 19,500 SQM FUTURE SITE FOR MUSEUM OF CONTEMPORARY ART AND DRAMATIC THEATRE WFC OFFICE 70,800 SQM CENTRUM MARSZAŁKOWSKA OFFICE + RETAIL 16,500 SQM CENTRAL RAILWAY STATION CBD 1 OFFICE UC 21,000 SQM WIDOK TOWERS OFFICE + RETAIL UC 29,000 SQM CENTRAL COMMUTER STATION
WARS SAWA JUNIOR IN THE HEART OF WARSAW CBD – ACQUIRED FOR € 301.5M
ANNUAL PEDESTRIANS FOOTFALL BUS LINES PEOPLE IN 30 MINUTES DRIVE- TIME ZONE UNDERGROUND STATION TRAMWAY STOP
LEGEND
TRAM LINES
METRO LINES
WARS SAWA JUNIOR I WARSAW I POLAND
20
WARS SAWA JUNIOR I WARSAW I POLAND
WARS SAWA JUNIOR | CENTRAL EASTERN EUROPE
21
ARKADY PANKRAC I PRAGUE I CZECH REPUBLIC
METRO STATION UNDER THE PROPERTY
*
TOWARDS THE CITY CENTER
G
ARKADY PANKRAC
*
PANKRAC RESIDENCE
O
*
OFFICES 3,200 EMPLOYEES
*
OFFICES 2,500 EMPLOYEES
*
OFFICES 3,200 EMPLOYEES
*
AN OFFICE TOWER UNDER DEVELOPMENT, EXPECTED OPENING 2018
*
HOTEL 450 ROOMS TOWARDS BRNO B
*
AN OFFICE TOWER UNDER DEVELOPMENT, 2,200 EMPLOYEES, EXPECTED OPENING 2018
*
LUXURY RESIDENTIAL TOWERS UNDER DEVELOPMENT 150 APARTMENTS
*
AN OFFICE TOWER UNDER DEVELOPMENT, 1,500 EMPLOYEES, EXPECTED OPENING 2018
*
DEKANKA RESIDENCE
ARKADY PANKRAC | CENTRAL EASTERN EUROPE
22
DEMOGRAPHICS
UNDERGROUND STATION
LEGEND
ISO OMENA |
NUMBER OF VISITORS )ANNUALY(
POPULATION WITHIN RADIUS OF 15 MINUTES DRIVING TIME OF THE PROPERTY (THOUSANDS)
AVERAGE PURCHASING POWER PER CAPITA ANNUALY (30% ABOVE COUNTRY’S AVG.)
COMPLETED DEVELOPMENT FUTURE DEVELOPMENT UNTILL 2030
CATCHMENT AREA AND FUTURE DEVELOPMENT
NIITTYKUMPU RESIDENTIAL AREA + 5,000 RESIDENTS COMPLETION IN 2021
FAIR VALUE OF € 758M* GLA OF 101,000 SQM
FINNOO NEW RESIDENTIAL AREA TOTAL OF 17,000 RESIDENTS AVERAGE OF 30,000 DAILY PASSENGERS USES METRO IN ISO OMENA (BUSINESS DAY AVERAGE) FIRST RESIDENTIAL BUILDINGS READY IN 2021. THE AREA SHOULD BE READY IN 2030 NEW BUSINESS SPACE 15,000 SQM
ISO OMENA I ESPOO, HELSINKI I FINLAND DEVELOPMENT IN PROCESS – HOTEL, SWIMMING POOL AND SCHOOL RESIDENTIAL AREA NEW METRO STATION METRO WILL START OPERATING IN 2023
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*As of 31/12/2019
MORUMBI| SÃO PAULO BRIDGE TOWER I NEW YORK I NY WARS SAWA JUNIOR | WARSAW
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE G KOCHAV HATZAFON | TEL AVIV
Second Quarter of 2020
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Liquidity Balance
242 366 745 1,353
2020 2021 2022 Total
Bond Maturity Schedule Until End of 2022
Expanded Solo As of 30/06/2020
*Including a deposit in the amount of NIS 346 million which was used for the tender offer of the Company's shares
and excluding approved credit facility in the amount of NIS 180 million.
2.2
*
1.4 0.4 0.4
30/06/2020*
NISו
Increase in Shareholder’s Equity Per Share
34.90 36.10
31/3/2020 30/6/2020
NIS
Unencumbered Assets
NIS 4.8 Billion Asset Value is Unencumbered, NIS 1.3 Billion of Which in Israel
3.0 4.8
31/12/2016 30/06/2020 +128
14,079 9,215
31/12/2016 30/06/2020
Net Debt (Expanded Solo)
NIS Billion
Net Debt Decreased by
NIS Million ו
for additional credit line facility in the amount of NIS 180 million which is secured by a pledge of a property in Israel.
As of 30.06.2020
NIS Billions ו
Cash and Cash Equivalents Unutilized Signed Credit Facility Restricted Deposit
NIS Billions ו NIS Million ו
NIS Billions
GAZITGLOBE
25
242 366 745 932 992 992 1,082 901 1,203 3.2% 4.9% 10.0% 12.5% 13.3% 13.3% 14.5% 12.1% 16.1% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 500 1,000 1,500 2,000 2,500 3,000
2020 2021 2022 2023 2024 2025 2026 2027 5.2% 4.6% 4.0% 4.2% 3.3% 3.7% 3.9% 1.3% 4.2%
Bond Maturity Schedule As of 30.06.2020
2028 and there after
(Inc. banks) – 3.7%
*2.0
NIS Billion
NIS Billion NIS Million ו L i q u i d i t y *Including approved credit facility in the amount of NIS 180 million and excluding a deposit in the amount of NIS 346 million which was used for the tender offer of the Company's shares.
GAZITGLOBE
26
3.0% 63%
Operational Performance
Same Property NOI
Northern Europe CEE Brazil U.S Israel
Total
Same property NOI declined by 8.5% for the period primarily from Atrium subsidiary due to reliefs imposed in Poland for the lockdown period and Brazil reopened for business on middle of June 2020 Proportionate NOI for the period was NIS 570 Million
89 91
Q2/2019 Q2/2020
ו NIS Million
Increase in Cash Flow
(Expanded Solo) Cash flow from
to last year
Occupancy Rate
As of June 30, 2020
93.5% 95.4% 96.7% 89.3% 97.6%
North Europe CEE Brazil U.S Israel
Total NISו
0.80 0.69
Q2/2019 Q2/2020 3.0% 63%
9% . 16
FFO p/s from FCR and FX FFO p/s excluding FCR and FX
8% . 13
0.59
Solid FFO Per Share Despite the Covid-19 Pandemic
FFO p/s in the quarter declined by 13.8% (excluding FCR at comparable exchange rates increased by 16.9%)
GAZITGLOBE
27
151 107 94
Q2/2018 Q2/2019 Q2/2020
Operating Cash Flow
Per Share (Expanded Solo)
2.19 2.31 2.83 2.26 1.45 1.53 1.67 2.12 2.26 1.45
2016 2017 2018 2019 H1/2020
Operating cash flow p.s Including special
Operating cash flow p.s excluding special
Compared to the Same Quarter In 2019
CAGR
2019
Interest Cost, Net
Expanded Solo
NIS Million ו
GAZITGLOBE
28
This presentation may include forward-looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues
statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other financial items. Forward-looking statements may also relate to our business strategy, goals and expectations concerning our market position, future operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and can be identified by the use of forward-looking terminology such as the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases. Any forward-looking information contained in this presentation is based, in addition to existing information of the Company, on present Company expectations and evaluations regarding future developments and trends and on the interaction of such developments and trends. Although we believe the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect. Our business and operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current expectations and are not guarantees of future performance. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in this presentation depending on a variety of factors including those described in greater detail in our Periodical and Annual Reports and Early Release of condensed financial information from the Company’s Financial Statements , and in other information we file and furnish including, but not limited to, with the Israel Securities Authority, including under the heading “Risk Factors.” All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any
release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this presentation. The information contained herein does not constitute a prospectus or other offering document, nor does it constitute or form part of any invitation or offer to sell, or any solicitation
form the basis of, or be relied on in connection with or relating to any action, contract, commitment or to the securities of Gazit-Globe Ltd.
GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE29
Or Ackerman
Head of Investor Relations
+972.3.6948000
Adi Jemini
CFO
CONTACT INFORMATION
THANK YOU FOR YOUR TIME GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE
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