Real-estate profit rises at Azrieli Group

Net operating income (NOI) from the company’s real-estate operations rose 11% to NIS 224 million for the third quarter.

November 24, 2010 23:53
1 minute read.
azrieli center 88 298

azrieli center 88 298. (photo credit: Courtesy)


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Real-estate and industrial company Azrieli Group Ltd. has reported strong third-quarter results for its income-producing real-estate operations as the company benefits from Israel’s thriving economy.

The holding company, whose core businesses include malls in Israel, energy and industrial interests through Granite Hacarmel Investments Ltd.and a 20 percent holding in credit-card company Leumi Card Ltd., went public on the Tel Aviv Stock Exchange six months ago.

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Net operating income (NOI) from the company’s real-estate operations rose 11% to NIS 224 million for the third quarter, from NIS 201m. for the third quarter last year.

Same-properties NOI in the malls sector rose 9% to NIS 150m., from NIS 137m., and same-properties NOI in the offices sector rose 3% to NIS 66m., from NIS 64m. Funds from operations (FFO) rose 9% to NIS 155m., from NIS 142m.

Azrieli Group reported a NIS 125m. net gain on the revaluation of real-estate properties. The gain refers only to the rise in the Consumer Price Index-linked rental contracts, and does not include other factors affecting property values.

The company said the increase in NOI and other factors would be reflected in the annual financial report.

Revenue from income-producing real estate rose to NIS 283m. for the third quarter, from NIS 252m. for the third quarter last year. Total net profit was NIS 251m., and total profit was NIS 425m. The company attributes most of the difference to a NIS 176.9m. increase in net fairvalue assessments of financial assets available for sale (an investment in Bank Leumi).

Azrieli Group’s consolidated revenue rose to NIS 255m. for the third quarter, from NIS 243.6m. for the third quarter last year. Its consolidated net profit fell nearly twothirds to NIS 243.1m., from NIS 640.1m.

Azrieli’s share price rose 1.4% by mid-afternoon to NIS 92.84, for a market cap of NIS 11.1 billion.

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