gazit globe dec 2012 investor presentation
TRANSCRIPT
Gazit-Globe | Company Presentation | December 2012
A GLOBAL REAL ESTATE PLATFORM
LOCATION LOCATION LOCATION
Disclaimer
2
This presentation may include forward-looking statements, including forecasts, evaluations, estimates and other information relating to future events and issues. Forward-looking 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, Registration Statement on Form F-1, Annual Report on Form 20F and in other information we file and furnish with the Israel Securities Authority and the Securities and Exchange Commission, 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 obligations to disclose information as required by applicable securities laws, we undertake no obligation to update any information contained in this presentation or to publicly 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 of any invitation or offer to purchase or subscribe for, any securities of Gazit-Globe Ltd. or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any action, contract, commitment or relating thereto or to the securities of Gazit-Globe Ltd.
LOCATION LOCATION LOCATION
Listed on the Tel-Aviv Stock Exchange (TASE: GLOB) & New York Stock Exchange (NYSE: GZT)
Focused on supermarket-anchored shopping centers
NIS 77.4 billion ($US 19.8 billion) in assets under management, over 600 properties
Approximately NIS 6.9 billion ($US 1.75 billion) in annual rent, more than NIS 18 million per day
6.6 million sqm of GLA, approximately 15,000 lease agreements
Approximately NIS 280 million in annual dividend for 2013, NIS 1.72 per share (Approx. $ 0.44)
Domestic Credit Rating: Aa3 Stable (Midroog, Moody’s subsidiary), ilA+ Stable (S&P Maalot)
A Global Real Estate Platform
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LOCATION
LOCATION LOCATION
Based on consolidated numbers including Atrium
Numbers in USD are presented based on the exchange rate as of September 30, 2012 of 1 USD = 3.912 NIS
(TSX: FCR) 45.6%
(TASE: GLOB, NYSE: GZT)
Think Global, Act Local
(NASDAQ OMX: CTY1S) 48.6% (NYSE: EQY) 45.5% (VSX/Euronext: ATRS) 34.5% (*)
(TASE: DORI) 55.4%
100% 100% 75% 100%
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LOCATION LOCATION LOCATION
As of September 30, 2012
(*) The Company has a shareholders’ agreement with CPI, a real estate fund that is part of the Apollo Global Real Estate Management L.P.
Group that holds, to the best of the Company’s knowledge, approximately 19.4% of the share capital of ATR
1.0 4.4
10.6
15.6
21.0
27.0
44.4
38.3
55.2 57.2
70.8
77.4
1991 1998 2000 2002 2004 2005 2006 2007 2008 2009 2010 2011 Q3 2012
Total Assets (NIS billions)
Since 2007, the Company’s financial statements are prepared in accordance with the IFRS. Based on IFRS, investment property is presented at fair value
Up & Running Growth Engine
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LOCATION LOCATION LOCATION
Div
iden
d P
er S
har
e (N
IS)
CAGR 11.2%
Demonstrated Long-Term Value Creation
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Consistent & Growing Dividends for Over a Decade
(*) Data from January 2000 to November 2012
LOCATION LOCATION LOCATION
0
200
400
600
800
1,000
31-Dec-99 31-Dec-00 31-Dec-01 31-Dec-02 31-Dec-03 31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11
Gazit-Globe TA-100 S&P EPRA Global
Average Annual Return of Approximately 18% from 2000
0.39 0.47 0.57 0.64 0.71 0.76
0.89 1.00 1.08
1.24 1.42 1.48 1.56 1.60
1.72
0.00
0.50
1.00
1.50
2.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 E
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Tel Aviv
Warsaw
Sao Paulo
Boston
New York
Los Angeles
San Francisco Bay Area Prague
Toronto
Global Strategy, Business Focus, High Growth Potential
Stockholm Tallinn
Miami
Rio Grande do Sul
LOCATION LOCATION LOCATION
8 Westbury Plaza , Long Island, NY, USA
Strong Urban Locations with High Barriers to Entry
9 Serramonte Shopping Center, San Francisco, USA
Strong Demographics in High Growth Markets
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Necessity Driven Asset Class
The Biewind & Tupper Buildings, Tufts Medical Center Campus, Boston, USA
11 Leaside Village, Ontario, Toronto, Canada
Development & Redevelopment
12 Palac Flora, Prague, Czech Republic
Achieving Market Dominance & Economies of Scale
13
Repositioning of
Properties
Property &
Adjacent Land
Acquisition
Redevelopment
of All/Part of the
Retail Shopping
Centers
New
Tenants
&
Anchor
Tenants
Expanding
Existing
Properties
Proactive Asset Management
13
LOCATION LOCATION LOCATION
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Development & Redevelopment
Cost to Complete
(NIS millions)
Total Investment
as of September 30, 2012
(NIS millions)
Number of Assets
Region
1,228 3,465 33 North America
385 469 5 Europe
(*) 137 1 Brazil
5 36 1 Israel
1,618 4,107 40 Total
Investments in development and re-development of more than NIS 9.0 billion over the past 5 years
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LOCATION LOCATION LOCATION
(*) The project is in the planning stage and has yet to be approved by the authorized organs of the Company
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Investment
opportunities
Economies of Scale
Improving the cost of
capital
Professional human capital
High liquidity & strong
balance sheet
Proactive and efficient operation
at all levels
Strategy in Action
15
LOCATION LOCATION LOCATION
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99% of NOI comes from Investment Grade Rated Countries
AAA AA+ AA- A+
A A- BBB BB+ BB
Canada United States
Estonia Israel Slovakia Poland Lithuania Romania Hungary
Finland Czech
Republic Russia
Germany Brazil
Sweden Latvia
Denmark
Source: Bloomberg / Standard & Poor ‘s )Foreign Rating/Long-Term Debt)/ December 2011
84%
15% 1%
AA+ Countries and Above Other Investment Grade Countries Below Investment Grade Countries
Source: Bloomberg/ Standard & Poor ‘s )Foreign Rating/Long-Term Debt)/ November 2012
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LOCATION LOCATION LOCATION
(*) Excluding foreign exchange fluctuation 17
93.3%
96.2%
98.9%
94.3% 94.0%
96.2%
98.9%
94.9%
North America Europe Israel Total
Q3/2011
Q3/2012
Strong tenants mix - Supermarkets, Necessity-Driven Retailers and Other High Quality Tenants
1-9/2012 Same Property NOI Growth(*) Resilient Assets with Stable Occupancy
Organic Growth - Global Diversification
17
2.2%
5.8% 6.0%
3.9%
North America Europe Israel Total
LOCATION
LOCATION LOCATION
56%
12%
32% Canada
Europe
USA
Israel
7-9/2012
External Growth - Investment Activity, NIS 4.35 billion
(NIS million)
Total Investments
7-9/2012 1-9/2012
New properties acquisition 1,202 3,063
Development & redevelopment 301 1,291
Total 1,503 4,354
Dispositions and recycle of capital 476 1,413
18
56%
13%
30% 1%
LOCATION
LOCATION LOCATION
1-9/2012
20
The Group has liquid assets available and undrawn lines of credit in the amount of NIS 8.3 billion
(of which approximately NIS 2.4 billion is on the Company level)
As of September 30, 2012, net debt to total assets (LTV) was 55.6%, as compared to 60.0% as of
September 30, 2011 and 58.0% as of December 31, 2011
Year to Date, the Group has raised approximately NIS 1.9 billion in equity
Year to Date, the Group has raised approximately NIS 4.8 billion in debentures, convertible debentures
and other loans
During and subsequent to the reporting period the credit rating of Atrium was upgraded by S&P and
Fitch to investment grade level of (BBB-) with a stable outlook and the credit rating of First Capital
Realty was upgraded by DBRS to BBB (High) and by Moody’s to Baa2 with a stable outlook
Liquidity and Financial Strength
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LOCATION
LOCATION LOCATION
21
65.9%
58.0% 57.8%
51.6% 53.8%
52.5%
48.1%
55.8%
64.9% 63.7% 60.7%
58.0% 55.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
31.12.00 31.12.01 31.12.02 31.12.03 31.12.04 31.12.05 31.12.06 31.12.07 31.12.08 31.12.09 31.12.10 31.12.11 30.9.12
FCR Acquisition
CTY Acquisition
ATR Acquisition
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Conservative Financial Leverage
Net Debt to Total Assets
(2000 – Q3/2012)
LOCATION LOCATION LOCATION
35%
34%
23%
8%
CAD $ Euro US $ NIS
35%
33%
30% 2%
Currency Diversification Lowers FX Risk
Assets
Currency Matching Policy
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Shareholders’ Equity
LOCATION
LOCATION LOCATION
33%
35%
26%
5% 1% Canada
Europe
USA
Israel
Brazil
11%
6% 5%
4%
3%
3% 2% 1%
Finland Poland Sweden Russia
Czech Rep. Baltics Germany Other
NOI Diversification Across Leading Economies
(*) Based on proportional consolidated NOI for the three months ended September 30, 2012
NOI Diversification (*)
23
LOCATION
LOCATION LOCATION
24
110
8,321
Shareholder Equity (*) (NIS millions)
6,642
142
LTV 55.6%
LTV 60.0%
LTV – Net Debt to Total Asset
Q3/2011 Q3/2012
25% 29%
Increase in FFO while Deleveraging – Q3/2012
FFO (NIS millions)
24
Q3/2011 Q3/2012
21%
FFO Per Share (NIS)
Q3/2011 Q3/2012
0.71
0.86
LOCATION LOCATION LOCATION
(*) Retroactively adjusted due to the implementation of new accounting standards (2011 numbers)
25
811
6.61 1,352
1,181
928 6.99
Upgrading the Portfolio while Increasing NOI
GLA (Square meter, millions)
Rental Revenues (*) (NIS millions)
Q3/2011 Q3/2012
NOI (*) (NIS millions)
14% 14%
25
Q3/2011 Q3/2012 Q3/2011 Q3/2012
LOCATION LOCATION LOCATION
5%
(*) Retroactively adjusted due to the implementation of new accounting standards (2011 numbers)
26
110 111 126 138 142
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
1,181
1,248 1,259 1,268
1,352
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
811 849 840
865
928
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
+14% +14%
0.71 0.71 0.76 0.84 0.86
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
26
+21% +29%
ובתזרים מפעולות למניה( FFO)צמיחה בתזרים מפעולות
)*(צמיחה חזקה בפרמטרים התפעוליים
LOCATION LOCATION LOCATION
Strong Growth in Operational Parameters (*)
Increase in FFO and FFO Per Share
Consistent Growth
NOI (NIS millions) Rental Revenues (NIS millions)
FFO (NIS millions) FFO Per Share (NIS)
(*) Retroactively adjusted due to the implementation of new accounting standards (Q1/12 & 2011 numbers)
27
38.6
49.4
59.7
38.8
44.4 50.4
2010 2011 Q3/2012
Epra NAV Per Share Equity Per Share
Consistent Growth in NAV Per Share
EPRA NAV (*) and Equity Per Share
27
From 2010 to Q3/2012 the dividends paid by the Company totaled NIS 650 million, NIS 4.2 per share
EPRA NAV Per Share
CAGR +28 % Equity Per Share
CAGR +16%
LOCATION
LOCATION LOCATION
(*) Retroactively adjusted due to the implementation of new accounting standards (2010 & 2011 numbers)
28
1.30
6.61
0.36
5.41
0.24
3.71
2000 2000 2000 Q3/2012
GLA (Square meter, millions)
NOI (*) (NIS billions)
Rental Revenue (*)
(NIS billions)
Consistent Growth for Over a Decade
CAGR
26% CAGR
26% CAGR
15%
28
Q3/2012 Q3/2012
(*) Q3/2012 Annualized
LOCATION LOCATION LOCATION
29
56.3% 38.5%
5.2%
Gazit-Globe – Shareholders
Norstar
Public and others
As of November 27, 2012 29
LOCATION LOCATION LOCATION
Institutional Investor