Gazit-Globe Reports Third Quarter 2012 Financial Results

Gazit-Globe Reports Third Quarter 2012 Financial Results

 Strong Growth in FFO and FFO Per Share for the Quarter, Increased by 29% and
                               21% Respectively

  Same Property NOI Grew by 3.9% in the Period, Occupancy Rate Increased to
                                    94.9%

TEL-AVIV, Israel, Nov. 27, 2012 (GLOBE NEWSWIRE) --– Gazit-Globe (TASE:GLOB)
(NYSE:GZT), one of the world's leading multi-national real estate companies
focused on acquisition, development and redevelopment of supermarket-anchored
shopping centers announced today its financial results for the three months
(the "quarter") and nine months (the "period") ended September 30, 2012.

References to the "Group" relate to Gazit-Globe's consolidated statements.
References to the "Company" relate to Gazit-Globe's stand-alone financial
statements. Unless otherwise stated, financial information included in this
press release relates to the "Group".

Highlights:

  *NOI for the quarter increased by 14% to NIS 928 million compared to NIS
    811 million for the same quarter last year
  *FFO for the quarter increased by 29% to NIS 142 million (NIS 0.86 per
    share) compared to NIS 110 million (NIS 0.71 per share) for the same
    quarter last year
  *Net income attributable to the Company's shareholders for the quarter
    totaled NIS 187 million (NIS 1.06 per diluted share) compared to NIS 183
    million (NIS 1.17 per diluted share) for the same quarter last year
  *Investments during the quarter totaled NIS 1.5 billion, compared to NIS
    1.6 billion for the same quarter last year. Investments during the period
    totaled NIS 4.4 billion, compared to NIS 6.3 billion for the same period
    last year
  *Total Same Property NOI for the period grew by 3.9% compared to the same
    period last year and occupancy rate as of September 30, 2012 increased to
    94.9% from 94.3% as of September 30, 2011
  *Shareholders' equity as of September 30, 2012 totaled NIS 8,321 million
    (NIS 50.4 per share), compared to NIS 6,642 million (NIS 43.0 per share)
    on September 30, 2011 and NIS 7,310 million (NIS 44.4 per share) as of
    December 31, 2011
  *EPRA NAV per share as of September 30, 2012 was NIS 59.7 compared to NIS
    46.6 per share as of September 30, 2011 and NIS 49.4 as of December 31,
    2011
  *As of September 30, 2012, the Group had cash balances and unutilized
    revolving credit facilities of NIS 8.3 billion, of which NIS 2.4 billion
    are at the Company's level
  *As of September 30, 2012, net debt to total assets (LTV) was 55.6%,
    compared to 60.0% on September 30, 2011 and 58.0% on December 31, 2011
  *The Company's Board of Directors declared a dividend policy for 2013 of a
    minimum quarterly dividend payment of NIS 0.43 per share (NIS 1.72 per
    share annualized) to be distributed as of the first quarter of 2013,
    growth of 7.5% from 2012.

Roni Soffer, President of Gazit-Globe: "We are pleased to conclude another
strong quarter for the Group. The strong growth in FFO per share and the
continued improvement in all operational parameters demonstrate the positive
impact of the steps we took over the past few years to improve our operational
efficiency, enhance the quality of our portfolio, recycle capital, and to
lower our cost of capital. Those steps have enabled us to increase our
dividend payments in 2013 as we have consistently done over the past 14 years.
We continue to strengthen our balance sheet and to lower our LTV while
maintaining strong liquidity and reinforcing our position as a leading global
player in our field."

Financial Highlights for the three months ended September 30, 2012:

  *Rental income increased by 14% to NIS 1,352 million compared to NIS 1,181
    million in the third quarter of 2011
  *NOI increased by 14% to NIS 928 million compared to NIS 811 million in the
    third quarter of 2011
  *Proportionate consolidated NOI increased by 13% to NIS 547 million,
    compared to NIS 482 million in the third quarter of 2011
  *FFO increased by 29% to NIS 142 million (NIS 0.86 per share) as compared
    to NIS 110 million (NIS 0.71 per share) in the third quarter of 2011
  *Net income attributable to the Company's shareholders for the quarter
    totaled NIS 187 million (NIS 1.06 per diluted share) compared to NIS 183
    million (NIS 1.17 per diluted share) for the same quarter last year
  *Cash flow from operating activities for the quarter totaled NIS
    568million, compared to cash flow of NIS 602 million in the third quarter
    of 2011

Financial Highlights for the nine months ended September 30, 2012:

  *Rental income increased by 12% to NIS 3,879 million compared to NIS 3,470
    million in the same period last year
  *NOI increased by 12% to NIS 2,633 million compared to NIS 2,345 million in
    the same period last year
  *FFO increased by 34% to NIS 395 million (NIS 2.40 per share) as compared
    to NIS 294 million (NIS 1.90 per share) in the same period last year
  *Net income attributable to the Company's shareholders for the period
    totaled NIS 733 million (NIS 4.23 per diluted share) compared to NIS 450
    million (NIS 2.89 per diluted share) for the same period last year
  *Cash flow from operating activities for the period totaled NIS 963
    million, compared to cash flow of NIS 892 million in the same period last
    year

Acquisition, Disposal, Development and Redevelopment Activities

During the quarter, the Group acquired 23 income-producing properties totaling
173 thousand square meters and adjacent land parcels for future development
for the aggregate amount of NIS 3.1 billion. The Group also invested an amount
ofNIS 1.3 billion in development and redevelopment projects. In addition,
the Group recycled capital and disposed non-core assets in the amount of NIS
1.4 billion.

As of September 30, 2012, the Group had 12 properties under development with a
gross leasable area of 285 thousand square meters and 28 properties under
redevelopment with a gross leasable area of 184 thousand square meters with a
total investment of NIS 4.1 billion. The additional cost to complete the
properties under development and redevelopment totals NIS 1.6 billion.

During the quarter, the Company announced the completion of the arrangement
with Gazit America and FCR. The Company acquired the outstanding common
sharesofGazit AmericanotalreadyownedbyitandFirst Capital
Realtyacquired Gazit America's medical office and retail properties.

During the quarter, the Company's privately held subsidiary Royal Senior Care
(60%) completed a transaction to sell 12 of its senior housing properties in
the U.S. The properties were sold for a total gross consideration of US$ 230
million of which the Company's portion was US$ 138 million.

Since the beginning of the year the Company purchased 11 million shares of
Atrium for a total of Euro 39.6 million and 1.5 million shares of Citycon for
a total of Euro 3.5 million. Subsequent to the reporting period, the Company
purchased approximately 23.5 million additional shares of Citycon in rights
issuances for a total of Euro 43.5 million.

Financing Activities

  *As of September 30, 2012, the Group had cash balances and unutilized
    revolving credit facilities of NIS 8.3 billion, of which NIS 2.4 billion
    are at the Company's level
  *During the quarter the company has entered into an agreement with a
    leading international bank for a $50 million credit facility for a period
    of two years
  *During the quarter, the company has entered into an agreement with an
    Israeli institution for a $US dominated loan of NIS 300 million ($ 76.6
    million) to mature on December 2022. The loan bears fixed annual interest
    at a rate of 5.5%
  *During and subsequent to the reporting period the credit rating of Atrium
    was upgraded by S&P and by 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
  *Year-to-date the Group has raised approximately NIS 1.9 billion in equity

Balance Sheet Highlights

  *As of September 30, 2012, net debt to total assets (LTV) was 55.6%,
    compared to 60.0% on September 30, 2011and 58.0% on December 31, 2011
  *Shareholders' equity as of September 30, 2012 totaled NIS 8,321 million
    (NIS 50.4 per share), compared to NIS 6,642 million (NIS 43.0 per share)
    on September 30, 2011 and NIS 7,310 million (NIS 44.4 per share) as of
    December 31, 2011
  *EPRA NAV per share as of September 30, 2012 was NIS 59.7 compared to NIS
    46.6 per share as of September 30, 2011 and NIS 49.4 as of December 31,
    2011

Dividend

  *The Company's Board of Directors declared a quarterly cash dividend of NIS
    0.40 per share payable on December 31, 2012 to shareholders of record as
    of December 17, 2012. The Company's Board of Directors declared a dividend
    policy for 2013 of a minimum quarterly dividend payment of NIS 0.43 per
    share (NIS 1.72 per share annualized) to be distributed as of the first
    quarter of 2013, growth of 7.5% from 2012. 

ACCOUNTING AND OTHER DISCLOSURES

The Company believes that publication of FFO, which is computed according to
EPRA guidance, more correctly reflects the operating results of the Company,
since the Company's financial statements are prepared in line with IFRS. In
addition, publication of FFO provides a better basis for the comparison of the
Company's operating results in a particular period with those of previous
periods and also provides a uniform financial measure for comparing the
Company's operating results with those published by other European property
companies.

In addition, pursuant to the investment property guideline issued by the
Israel Securities Authority in January 2011, FFO is to be presented in the
"Description of the Company's Business" section of the annual report of
investment property companies on the basis of the EPRA criteria.

As clarified in the EPRA and NAREIT position papers, the EPRA Earnings and the
FFO measures do not represent cash flows from operating activities according
to accepted accounting principles, nor do they reflect the cash held by a
company or its ability to distribute that cash, and they are not a substitute
for the reported net income. Furthermore, it is clarified that these measures
are not audited by the Company's independent auditors.

CONFERENCE CALL/WEB CAST INFORMATION

Gazit-Globe will host a conference call and webcast in English on Tuesday,
November 27, 2012 at 17:00 Israel Time, 15:00 United Kingdom/ 16:00 Central
European Time/ 10:00 a.m. Eastern Time to review the third quarter financial
results. Shareholders, analysts and other interested parties can access the
conference call by dialing 1 866 966 9439 (U.S./Canada) or 0800 694 0257
(U.K.) or +44 (0) 1452 555 566 (International) or 1 809 216 057(Israel) or on
the Company's website www.gazit-globe.com.

For those unable to participate during the call, a replay will be available
for future review on Gazit-Globe's website under Investor Relations.

FOR ADDITIONAL INFORMATION

A comprehensive copy of the Company's annual report is available on
Gazit-Globe website at www.gazit-globe.com.To be included in the Company's
e-mail distributions for press releases and other Company notices, please send
e-mail addresses to Ms. Avishag Kichel, International Investor Relations, at
akichel@gazitgroup.com.

ABOUT GAZIT-GLOBE
Gazit-Globe is one of the largest owners and operators of supermarket-anchored
shopping centers in the world. In addition, the Company is active in North
America in the healthcare real estate sector. Gazit-Globe is listed on the Tel
Aviv Stock Exchange (TASE:GLOB) and is included in the TA-25 and the
Real-Estate 15 indices in Israel. The Company is also listed on the New York
Stock Exchange (NYSE:GZT). The Group operates properties with a total value of
approximately $20.0 billion in more than 20 countries and owns and operates
over 600 properties with a gross leasable area of approximately 6.6 million
square meters. www.gazit-globe.com.

FORWARD LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of the
U.S. federal securities laws. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements involve a number of known and unknown risks and uncertainties,
many of which are outside our control, that could cause our future results,
performance or achievements to differ significantly from the results,
performance or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to such
differences include risks detailed in our public filings with the SEC. Except
as required by law, we undertake no obligation to update any forward-looking
or other statements herein, whether as a result of new information, future
events or otherwise.

Some historical numbers were retroactively adjusted due to new accounting
standards
Numbers presented in USD are based on the exchange rate as of September 30,
2012 of 1 USD = 3.912 NIS


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                                            
                                       September 30,          December 31,
                                       2012        *) 2011    *) 2011
                                       Unaudited              Audited
                                       NISin millions
ASSETS                                                      
                                                            
CURRENT ASSETS:                                              
                                                            
Cash and cash equivalents               1,421       842        1,539
Short-term deposits and loans          466         363        770
Marketable securities at fair value     110         106        97
through profit or loss
Available-for-sale financial assets     22          42         67
Financial derivatives                   78          96         84
Trade receivables                       731         628        656
Other accounts receivable               359         373        291
Inventory of buildings and apartments   686         627        697
for sale
Current tax receivable                  14          24         14
                                                            
                                       3,887       3,101      4,215
                                                            
Assets classified as held for sale      1,301       2,026      714
                                       5,188       5,127      4,929
NON-CURRENT ASSETS:                                          
                                                            
Equity-accounted investees              4,829       4,358      4,390
Other investments, loans and            607         515        308
receivables
Available-for-sale financial assets     358         335        314
Financial derivatives                  826         1,018      937
Investment property                     55,941      48,144     51,014
Investment property under development   3,623       1,637      2,198
Non-current inventory                  23          23         23
Fixed assets, net                       187         155        157
Goodwill                                106         136        101
Other intangible assets, net            18          81         68
Deferred taxes                          221         170        160
                                                            
                                       66,739     56,572    59,670
                                                            
                                       71,927      61,699     64,599
                                                            
*)Retroactively adjusted due to implementation of new IFRS standards, see
Notes 2b, 2c and 6 in the financial statements.
                                                            
The accompanying notes are an integral part of these interim consolidated
financial statements.


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                                            
                                         September 30,        December 31,
                                         2012      *) 2011    *) 2011
                                         Unaudited            Audited
                                         NISin millions
LIABILITIES AND EQUITY                                      
                                                            
CURRENT LIABILITIES                                          
Credit from banks and others              429       286        453
Current maturities of non-current         4,565     2,401      3,525
liabilities
Financial derivatives                     12        29         25
Trade payables                            822       657        819
Other accounts payable                    1,318     1,329      1,218
Advances from customers and buyers of     263       238        277
apartments
Current tax payable                       59        43         53
                                                            
                                         7,468     4,983      6,370
Liabilities attributable to assets held   176       722        103
for sale
                                                            
                                         7,644     5,705      6,473
NON-CURRENT LIABILITIES                                      
Debentures                                17,764    15,501     15,379
Convertible debentures                   1,281     1,078      1,121
Interest-bearing loans from financial     17,899    18,474     18,973
institutions and others
Financial derivatives                    483       293        339
Other financial liabilities               339       181        277
Employee benefit liability, net           9         6          8
Deferred taxes                           2,995     2,168      2,401
                                                            
                                         40,770    37,701     38,498
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF                     
THE COMPANY
Share capital                             218       208        218
Share premium                             3,799     3,486      3,787
Retained earnings                         4,541     3,694      3,904
Foreign currency translation reserve      (282)     (878)      (728)
Other reserves                            66        157        150
Loans granted to purchase shares of the   **)-     (4)        **)-
Company
Treasury shares                           (21)      (21)       (21)
                                                            
                                         8,321     6,642      7,310
                                                            
Non-controlling interests                15,192    11,651     12,318
                                                            
Total equity                             23,513    18,293     19,628
                                                            
                                         71,927    61,699     64,599
                                                            
*)Retroactively adjusted due to implementation of new IFRS standards, see
Notes 2b, 2c and 6 in the financial statements.
**)Represents an amount of less than NIS 1 million.
                                                            
The accompanying notes are an integral part of these interim consolidated
financial statements.


CONSOLIDATED STATEMENTS OF INCOME
                                                             
                                                             
                            Nine months ended Three months ended Year ended
                            September 30,     September 30,      December 31,
                            2012     *) 2011  2012     *) 2011   *) 2011
                            Unaudited                            Audited
                            NISin millions (except per share amounts)
                                                             
Rental income                3,879    3,470    1,352    1,181     4,718
Revenues from sale of
buildings, land and          1,335    679      403      400       1,001
contractual works performed
                                                             
Total revenues               5,214    4,149    1,755    1,581     5,719
                                                             
Property operating expenses  1,246    1,125    424      370       1,522
Cost of buildings sold, land
and contractual works        1,267    656      382      392       967
performed
                                                             
Total cost of revenues       2,513    1,781    806      762       2,489
                                                             
Gross profit                 2,701    2,368    949      819       3,230
                                                             
Fair value gain from
investment property and      1,472    827      441      213       1,670
investment property under
development, net
General and administrative   (476)    (479)    (149)    (161)     (733)
expenses
Other income                 168      102      43       57        119
Other expenses               (40)     (53)     (23)     (42)      (114)
Group's share in earnings of
equity-accounted investees,  279      277      125      80        334
net
                                                             
Operating income            4,104    3,042    1,386    966       4,506
                                                             
Finance expenses             (1,763)  (1,640)  (666)    (580)     (2,197)
Finance income               86       44       41       15        72
                                                             
Profit before taxes on       2,427    1,446    761      401       2,381
income
Taxes on income             458      170      115      (31)      328
                                                             
Net income                  1,969    1,276    646      432       2,053
                                                             
Attributable to:                                              
                                                             
Equity holders of the        733      450      187      183       719
Company
Non-controlling interests    1,236    826      459      249       1,334
                                                             
                            1,969    1,276    646      432       2,053
Net earnings per share attributable to equity holders            
of the Company (NIS):
                                                                
Basic net earnings          4.44     2.91     1.13     1.18      4.65
                                                             
Diluted net earnings        4.23     2.89     1.06     1.17      4.3
                                                             
*)Retroactively adjusted due to implementation of new IFRS standards, see
Notes 2b, 2c and 6 in the financial statements.
                                                             
The accompanying notes are an integral part of these interim consolidated
financial statements.


The table below presents the calculation of the Company's FFO, computed
according to the directives of EPRA, and its FFO per share for the stated
periods:
                                                              
                        For the 9             For the 3          For the
                         months ended          months ended       year ended
                        September 30          September 30       December31
                        2012      2011^(*^)   2012    2011^(*^)  2011^(*^)
                        NIS in millions (other than per share data)
                                                             
Net income attributable
to equity holders of the 733      450        187    183       719
Company for the period
                                                             
Adjustments:                                                  
Fair value gain from
investment property and  (1,472)   (827)       (441)   (213)      (1,670)
investment property
under development, net
Capital loss (gain) on
sale of investment
property and investment  (3)       41         (16)    30        63
property under
development
Impairment of goodwill   --       --         --     --        38
Changes in the fair
value of derivatives     111      105        76     73        179
measured at fair value
through profit and loss
Adjustments with respect
to equity-accounted      (107)     (124)       (60)    (39)       (131)
investees
Loss from decrease in
holding rate of          3        1          2      --        1
investees
Deferred taxes, current
taxes with respect to    440      175        106    (21)       324
disposal of properties
Gain from bargain        (134)     (84)        (15)    (58)       (102)
purchase
Acquisition costs
recognized in profit and 20       24         14     1         21
loss
Loss (gain) from early
redemption of            6        (15)        4      (16)       6
interest-bearing
liabilities
Non-controlling
interests' share in      611      317        229    83        654
above adjustments
                                                             
Nominal FFO             208      63         86     23        102
                                                             
Additional adjustments:                                       
CPI and exchange rate    134      148        52     28        133
linkage differences
Depreciation and         12       11         4      3         15
amortization
Adjustments with respect
to companies accounted   2        37         (13)    34        67
for using the equity
method
Other adjustments ^ 1    39       35         13     22        88
                                                             
FFO according to the     395       294        142    110       405
management approach
FFO according to the
management approach per  2.40     1.90       0.86   0.71      2.62
share (in NIS)
                                                             
^(*^) Retroactively adjusted due to the implementation of new IFRSs; for
details refer to notes 2.b, 2.c and 6 of the financial statements.
                                                             
                                                             
^1 Income and expenses adjusted against the net income for the purpose of
calculating FFO, which include the adjustment of expenses and income from
extra ordinary legal proceedings not related to the reporting periods,
expenses arising from one-time payments relating to the termination of the
engagement of senior Group employees and also income and expenses from
operations not related to income-producing property, also, with regard to the
periods that are presented in 2011 above, the data include the adjustment of
income from the waiver of the bonus and the compensation with respect to the
expiration of the employment agreement of the Chairman of the Board of
Directors.

CONTACT: Gazit-Globe Ltd.
         1 HaShalom Rd.
         Tel Aviv, Israel 67892
         +972 3 694 8000
        
         For additional information:
         Gil Kotler,
         Senior Executive VP and CFO

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