G City Ltd. · TASE:GCT
G City — Gazit-Globe — Investor Presentation (January 2016)
38 slides from G City's investor presentation, Jan 19, 2016
Slide 1: The Evolution of a Global Retail Champion
THE EVOLUTION OF A GLOBAL RETAIL CHAMPION GAZIT-GLOBE PRESENTATION FOR INVESTORS’ MEETING JANUARY 2016
Slide 2: Forward-looking statements
This presentation may include forward-looking statements, including forecasts, evaluations, pro forma figures, 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
Slide 3: A global company specializing in the supermarket-anchored shopping center sector
A GLOBAL COMPANY SPECIALIZING IN THE SUPERMARKET-ANCHORED SHOPPING CENTER SECTOR, FOCUSING ON URBAN GROWTH MARKETS Geographical Breakdown European Breakdown Brazil Israel 3% 6% USA Other, 4% 19% àéøåôä 47% Baltic states, Poland, 12% 2% Czech Rep., 4% Russia, 4% Finland, 9% Canada 25% Sweden, 5% Norw
Slide 4: Accelerated improvement of the property portfolio
ACCELERATED IMPROVEMENT OF THE PROPERTY PORTFOLIO What are we selling? Properties that are not core properties Properties in second-tier cities Properties with a lower growth expectation What are we investing in? Core properties Dominant properties centrally located in large cities Development and r
Slide 5: Investments in acquisitions, property development and property sales since 2010
INVESTMENTS IN ACQUISITIONS, PROPERTY DEVELOPMENT AND PROPERTY SALES SINCE 2010 Investments of NIS 42 billion in Property sales totaling acquisitions and property NIS 12 billion development LOCATION LOCATION LOCATION 2010 9/2015 Sales Investments
Slide 6: Focus on prime properties centrally located in large cities
FOCUS ON PRIME PROPERTIES CENTRALLY LOCATED IN LARGE CITIES Dominant Properties valued at over—$ 100 million properties having strong and growing cash No. of As % of total properties properties flow 46 39% 17% 10 2008 2014 2008 2014 LOCATION LOCATION 6 LOCATION
Slide 7: Focus on properties located in growth regions with high household incomes
FOCUS ON PROPERTIES LOCATED IN GROWTH REGIONS WITH HIGH HOUSEHOLD INCOMES Properties in regions with better demographics Average household income in a 5 km radius of the company’s properties $102,000 $C96,000 $73,000 $C76,000 2009 2015 2009 2015 LOCATION LOCATION LOCATION
Slide 8: Focus on properties in regions with high population density
FOCUS ON PROPERTIES IN REGIONS WITH HIGH POPULATION DENSITY Population in a 5 km radius of the company’s properties Strong demographics in growth regions 244,000 186,000 134,000 82,000 2009 2015 2009 2015 LOCATION LOCATION LOCATION
Slide 9: United States
UNITED STATES
Slide 10: Acquisitions and sales in the United States
ACQUISITIONS AND SALES IN THE UNITED STATES Investments of NIS 8.7 billion in Property sales totaling acquisitions and property NIS 4.8 billion development Sales Investments 2010 9/2015 LOCATION LOCATION 10 LOCATION
Slide 11: NOI in United States targeted to grow from $235M to $400M per year
NOI IN UNITED STATES TARGETED TO GROW FROM $ 235M TO $ 400M PER YEAR Current NOI Future NOI Development and redevelopment in Increase in progress anchor rentals $235M NOI $19 $22 $36 $88 $400M NOI Increase in small store rental income Future development and redevelopment of existing properties LOCAT
Slide 12: Potrero Center, San Francisco, USA
Potrero Center, San Francisco, USA Expected Investment: US$ 300+ Million
Slide 13: Potrero Center, San Francisco, USA
Potrero Center, San Francisco, USA LOCATION 13 LOCATION
Slide 14: Westwood Complex, Bethesda, Maryland, USA
Westwood Complex, Bethesda, Maryland, USA LOCATION LOCATION 14 LOCATION
Slide 15: Serramonte Center, Daly City, USA
Serramonte Center, Daly City, USA LOCATION LOCATION 15 LOCATION
Slide 16: Potential in the United States
POTENTIAL IN THE UNITED STATES Typical Cash Flow for a Shopping Center in the United States Golden Age – 15 years 49% $28M Anchors NOI Uplift Last Expiration Mark-To-Market 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 1950 1960 1970 1980 1990 2000 2010 2020 Anchor Re
Slide 17: NOI in United States targeted to grow from $235M to $400M per year
NOI IN UNITED STATES TARGETED TO GROW FROM $ 235M TO $ 400M PER YEAR Current NOI Development and redevelopment in progress Increase in anchor rental income Future NOI $235M NOI $19 $22 $36 $88 $400 M NOI Increase in small store rental income Future development and redevelopment of existing propertie
Slide 18: Canada
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Slide 19: Acquisitions and sales in Canada
ACQUISITIONS AND SALES IN CANADA Investments of NIS 2.3 billion in Property sales totaling acquisitions and property NIS 2.9 billion development Sales Investments 2010 9/2015 LOCATION LOCATION LOCATION
Slide 20: Canada – activity in urban markets with high entry barriers
CANADA – ACTIVITY IN URBAN MARKETS WITH HIGH ENTRY BARRIERS LOCATION LOCATION 20 LOCATION
Slide 21: Yorkville Village, Toronto, Canada
Yorkville Village, Toronto, Canada Expected Investment: CAD 350+ Million
Slide 22: Yorkville Village, Toronto, Canada
Yorkville Village, Toronto, Canada LOCATION LOCATION 22 LOCATION
Slide 23: Growth in NOI
GROWTH IN NOI 10-year average – 4% LOCATION LOCATION LOCATION
Slide 24: Growth in rental income from lease renewals
GROWTH IN RENTAL INCOME FROM LEASE RENEWALS 10-year average – 10.1% LOCATION LOCATION LOCATION
Slide 25: Redevelopment activity in Canada
REDEVELOPMENT ACTIVITY IN CANADA Property name City Existing Area under Total Estimated area development costs completion (in Sqf) (in Sqf) (in C$ M) date Yorkville Village Toronto 285,000 41,000 352 2016 / 2017 Mount Royal Calgary 380,000 96,000 217 2017 Village King High Line Toronto 470,000 470,0
Slide 26: Activity in European nations
ACTIVITY IN EUROPEAN NATIONS
Slide 27: Promenada, Warsaw, Poland
Promenada, Warsaw, Poland Investment in Phase 1&2 out of 7: € 49 Million
Slide 28: Acquisitions and sales in Europe
ACQUISITIONS AND SALES IN EUROPE Investments of NIS 18.8 billion Property sales totaling in acquisitions and property NIS 3.2 billion development Sales Investments 2010 9/2015 LOCATION LOCATION LOCATION
Slide 29: Atrium – then and now
ATRIUM – THEN AND NOW Q4/2008 Q3/2015 The company’s income-producing property €1.6bn €2.7bn Occupancy rate 93.6% 96.3% Operating margin 70.1% 95.1% Leverage and debt cost 61%, 8.3% 25.5%, 3.7% Debt rating BB- (2009) BBB- Dividend €3 cent p.s. (FY09) €27 cent p.s. LOCATION LOCATION LOCATION
Slide 30: Exposure to the strong nations in Central Europe
EXPOSURE TO THE STRONG NATIONS IN CENTRAL EUROPE Value of Properties – Atrium (EUR 2.7 billion) Other 11% Russia 11% Poland 55% Czech Rep. 23% Poland – 66% of the value of the properties can be found in cities with a population of over 300 thousand, more than 50% of which is in Warsaw Czech Rep. –64
Slide 31: Citycon – then and now
CITYCON – THEN AND NOW Q4/2009 Q3/2015 The company’s income-producing property € 2.25bn €4.7bn Equity € 0.77bn €2.25bn Leverage and debt cost 594. %, 4.2% 45.2%, 3.4% Debt rating No debt rating BBB / Baa2 Baltic & Baltic & others others 8% 9% Sweden Finland 29% 35% Finland 64% Sweden 27% Norway 28%
Slide 32: Iso Omena, Helsinki, Finland
Iso Omena, Helsinki, Finland Expected Investment: € 182 Million
Slide 33: Iso Omena, Helsinki, Finland
Iso Omena, Helsinki, Finland LOCATION LOCATION 33 LOCATION
Slide 34: Norway – establishing the leading platform in the Nordic region
NORWAY – ESTABLISHING THE LEADING PLATFORM IN THE NORDIC REGION GDP per capita, at $ 97,300, is one of the highest in the world The unemployment rate, at 3.0%, is one of the lowest in Europe LOCATION LOCATION LOCATION (1) Data source: Bloomberg ,The World Bank and Citycon’s 2014 presentation
Slide 35: Norway – establishing the leading platform in the Nordic region
NORWAY – ESTABLISHING THE LEADING PLATFORM IN THE NORDIC REGION Sektor, the second biggest shopping-center company in Norway, was acquired at an investment of EUR 1.5 billion (NIS 6.3 billion) Most of the properties are located in the country’s urban regions – around Oslo, Bergen and Stavanger Sekto
Slide 36: And what will tomorrow bring?
AND WHAT WILL TOMORROW BRING?
Slide 37: Increased direct ownership of property
INCREASED DIRECT OWNERSHIP OF PROPERTY An integrated model based more on private real estate alongside holdings in public companies Receipt of management fees and success fees from financial partners in Israel and abroad A larger share for Gazit-Globe’s equity holders in the value created from prope
Slide 38: Questions?
QUESTIONS?