G City Ltd. · TASE:GCT
G City — Gazit-Globe — Q3 2016 Earnings Presentation
14 slides from G City's earnings presentation, Nov 23, 2016
Slide 1: The Evolution of a Global Retail Champion: Q3/2016 Financial Results
THE EVOLUTION OF A GLOBAL RETAIL CHAMPION Q 3 / 2016 Financial Results – November 2 , 2016
Slide 2: Disclaimer
Page 2 DISCLAIMER This presentation may include forward - looking statements, including forecasts, evaluations, pro forma figures, estimates and oth er information relating to future events and issues. Forward - looking statements may relate to, among other things, revenues, earnings, cash flo ws, c
Slide 3: Presenters: Rachel Lavine CEO, Adi Jemini CFO
Page 3 Rachel Lavine CEO Adi Jemini CFO
Slide 4: Financial Results for Q3 2016
Page 4 FINANCIAL RESULTS FOR Q 3 2016 3 months ended September 30 (in NIS million except per share data) Change % Property rental income 1,512 1,547 (2.3%) NOI 1,061 1,066 (0.5%) NOI margin 70.2 % 68.9 % - FFO 144 158 (8.9%) FFO per share (NIS) 0.74 0.89 (17%) Number of shares used in calc
Slide 5: Financial Results for Q1-Q3 2016
Page 5 months ended September 30 (in NIS million except per share data) 6 5 Change % Property rental income 4,574 4,588 (0.3%) NOI 3,187 3,137 1.6% NOI margin 69.7 % 68.4 % - FFO 421 481 (12%) FFO per share (NIS) 2.15 2.69 (20%) Number of shares used in calculating the diluted FFO per shar
Slide 6: FFO and LTV Trend
Page 6 FFO AND LTV TREND LTV - YTD Q1 – Q3/2016 FFO and FFO Per share - YTD 135 142 144 120 130 140 150 Q1/2016 Q2/2016 Q3/2016 0.69 0.72 0.74 0.60 0.65 0.70 0.75 Q1/2016 Q2/2016 Q3/2016 62.0 % 60.9% 57.7 % 57.8% Q4/2015 Q1/2016 Q2/2016 Q3/2016 Solo – Market LTV 63.7 % 63.9% 62.8% 62.8 % Q4/2015 Q1/
Slide 7: Operational Parameters: Resilient Assets with Stable Occupancy
Page 7 OPERATIONAL PARAMETERS Resilient Assets with Stable Occupancy Q1 – Q3/2016 Same Property NOI Growth 95.5 % 95.3 % Total 95.6% 94.7% 96.7 % 96.3% 95.4% 95.0% 96.0 % 95.7 % USA Canada North Europe Central and Eastern Europe 30/09/2015 30/09/2016 Total 0.6% 4.4 % 0.8% - 1.7% - 2.6% USA Canada No
Slide 8: Fair Value of Investment Property
Page 8 FAIR VALUE OF INVESTMENT PROPERTY Change in fair value (pre - tax, Consolidated ) Quarter ended September 30 2016 2015 178 180 135 (45) 13 (121) ( 31 ) (28) ( 4 ) 14 291 - (NIS million)
Slide 9: Balance Sheet Highlights
Page 9 As of September 30 As of December 31 (in NIS million except per share data) Total Assets 85 , 110 84 , 236 Investment Properties & Development 76 , 862 74 , 019 Interest Bearing Debt, Net 42 , 337 41 , 962 Total Equity 33 , 266 30 , 995 Shareholder’s Equity 7 , 837 7 , 512 Sharehold
Slide 10: Liquidity and Financial Strength
Page 10 LIQUIDITY AND FINANCIAL STRENGTH 2.4 8.9 September 30, 2016 Liquidity Leverage at the company and its private subsidiaries NIS Billions Unencumbered Pool of Assets NIS Billions consolidated Subsidiaries 83 % of investment property 11.3 51.3% 50.7% December 31, 2015 September 30, 2016 60.5 64
Slide 11: Well Staggered Debt Maturity Schedule
Page 11 80% 20 % 335 772 1,355 1,519 1 , 186 999 891 1 , 060 1 , 212 494 2,086 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 and After NIS Millions ( 1 ) As of 30 September 2016 . Comprises financial liabilities at the Gazit - Globe parent level and its private subsidiaries. Debt Breakdown
Slide 12: Transaction Rationale
Page 12 Transaction Rationale ▪ Savings in corporate expenses and cost synergies are expected to exceed NIS 100 million annually. ▪ Combined entity will have a more attractive cost of capital and the merger will strengthen Regency’s standings vis - à - vis its tenants, as well as with regard to its
Slide 13: Merger Transaction Summary
Page 13 M erger T ransaction Summary ▪ Gazit Globe’s US subsidiary, Equity One (NYSE: EQY), will merge with Regency Centers (NYSE: REG ) creating the largest and leading high - quality supermarket anchored REIT in the US with an aggregate market capitalization exceeding US$ 11.0 billion and an enter
Slide 14: Good Things Happen When You Own Good Real Estate
Page 14 GOOD THINGS HAPPEN WHEN YOU OWN GOOD REAL ESTATE