Gazit-Globe Reports Year-End and Fourth Quarter 2012 Financial Results

Gazit-Globe Reports Year-End and Fourth Quarter 2012 Financial Results

               Total Investments of NIS 5.7 Billion During 2012

FFO and FFO Per Share Grew by 32% and 23% Respectively, Same Property NOI Grew
                                  by 3.9% 

TEL-AVIV, Israel, March 20, 2013 (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 year and the
fourth quarter ended December 31, 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 year increased by 11% to NIS 3,544 million (US$ 949 million)
    compared to NIS 3,196 million (US$ 856 million) in 2011
  *FFO for the year increased by 32% to NIS 533 million (US$ 143 million), or
    NIS 3.23 per share (US$0.87), as compared to NIS 405 million (US$ 108
    million), or NIS 2.62 per share (US$ 0.70), in 2011
  *Investments during the year totaled NIS 5.7 billion (US$1.5 billion). The
    group also recycled capital from the divesture of non core assets in the
    amount of NIS 1.5 billion (US$ 0.4 billion), and sold the majority of its
    senior housing platform for a total of NIS 0.9 billion (US$ 0.23 billion)
  *Same Property NOI for the year grew by 3.9% compared to 2011 and occupancy
    rate as of December 31, 2012 increased to 95.0% from 94.3% as of December
    31, 2011
  *Shareholders' equity as of December 31, 2012 totaled NIS 7,849 million
    (US$ 2,103 million), or NIS 47.5 per share (US$ 12.72), as compared to NIS
    7,310 million (US$1,958 million), or NIS 44.4 per share (US$ 11.89), as of
    December 31, 2011
  *EPRA NAV per share as of December 31, 2012 was NIS 56.9 (US$ 15.24)
    compared to NIS49.4 per share (US$ 13.23) as of December 31, 2011
  *As of December 31, 2012, the Group had cash on hand and unutilized
    revolving credit facilities in the amount of NIS 8.2 billion (US$ 2.2
    billion) of which NIS 2.6 billion (US$ 0.7 billion) is at the level of the
    Company and its fully owned subsidiaries
  *As of December 31, 2012, net debt to total assets (LTV) was 56.1%,
    compared to 58.0% as of December 31, 2011
  *The Company's Board of Directors declared a quarterly cash dividend of NIS
    0.43 per share (US$ 0.12) payable on April 21, 2013 to shareholders of
    record as of April 7, 2013, which represents an annualized dividend per
    share of NIS 1.72 (US$ 0.46)

"During the year our business continued to benefit from favorable trends in
many of our key markets, including the U.S., Canada and Europe. Our focus on
investing and developing properties in densely-populated urban areas that are
supply-constrained and have appealing demographics drove our strong financial
performance, including 32% year-over-year increase in FFO and 23% increase in
FFO per share." said Roni Soffer, President of Gazit-Globe "We also
strengthened and delevered our balance sheet, and continued to recycle capital
within the group, while issuing significant amounts of equity and long term
debt. The Group has a high quality portfolio and we are well positioned for
growth over the long term as we continue to seize opportunities in the various
territories in which we operate."

Financial Highlights for 2012:

  *Rental income increased by 11% to NIS 5,249 million compared to NIS 4,718
    million in 2011
  *NOI for the year increased by 11% to NIS 3,544 million compared to NIS
    3,196 million in 2011
  *FFO for the year increased by 32% to NIS 533, or NIS 3.23 per share, as
    compared to NIS 405 million, or NIS 2.62 per share, in 2011
  *Net income attributable to the Company's shareholders for the year totaled
    NIS 957 million, or NIS 5.59 per share, compared to NIS 719 million, or
    NIS 4.30 per share, in 2011
  *Cash flow from operating activities totaled NIS 1,393 million, compared to
    NIS 1,126 million in 2011
  *Same-property NOI grew by 3.9%, resulting from an increase of 2.3% in the
    same-property NOI from North America, a 5.8% increase in same-property NOI
    from Europe and a 3.5% increase in same-property NOI from Israel
  *ccupancy rate as of December 31, 2012 increased to 95.0% from 94.3% as of
    December 31, 2011. Occupancy rate as of December 31, 2012 was 94.1% in
    North America, 96.5% in Europe and 98.6% in Israel
  *The fair value gain from investment property and investment property under
    development was NIS 1,913 million compared to NIS 1,670 million in 2011

Financial Highlights for the three months ended December 31, 2012:

  *Rental income increased by 10% to NIS 1,370 million compared to NIS 1,248
    million in the fourth quarter 2011
  *NOI increased by 7% to NIS 911 million compared to NIS 851 million in the
    fourth quarter 2011
  *Proportional consolidated NOI increased by 3% to NIS 531 million, compared
    to NIS 517 million in the fourth quarter 2011
  *FFO increased by 23% to NIS 137 million, or NIS 0.83 per share, as
    compared to NIS 111 million, or NIS 0.71 per share, in the fourth quarter
    2011
  *Net income attributable to the Company's shareholders totaled NIS 224
    million, or NIS 1.34 per share, compared to NIS 269 million, or NIS 1.54
    per share, in the fourth quarter 2011
  *Cash flow from operating activities totaled NIS 430 million, compared to
    NIS 234 million in the fourth quarter 2011
  *The fair value gain from investment property and investment property under
    development was NIS 441 million compared to NIS 843 million in the fourth
    quarter 2011

Acquisition, Development and Redevelopment Activities:

During the year, the Group acquired 30 income-producing properties totaling
224 thousand square meters and adjacent land parcels for future development in
a total amount of NIS 3,836 million. The Group also invested an amount of NIS
1,856 million in new development and redevelopment projects.

As of December 31, 2012, the Group had 10 properties under development with a
gross leasable area of 217 thousand square meters and 24 properties under
redevelopment with a gross leasable area of 189 thousand square meters with a
total investment of NIS 3,856 million. The additional cost to complete the
properties under development and redevelopment totals NIS 1,138 million.

In 2012 the Group completed the arrangement with Gazit America (GAA) and First
Capital Realty (FCR). The Company acquired the outstanding common shares of
Gazit America not already owned by it and First Capital Realty acquired Gazit
America's medical office and retail properties.

In August 2012 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.

Financing Activities:

  *During 2012, the Group raised NIS 1.8 billion in equity and NIS 6.2
    billion in debentuers and convertibale debentuers
  *The average cost of debt during 2012 was 5.2% compared to 5.7% during 2011
  *As of December 31, 2012, net debt to total assets (LTV) was 56.1%,
    compared to 58.0% as of December 31, 2011
  *During 2012 the credit rating of Atrium was upgraded by S&P and by Fitch
    to investment grade level of (BBB-) with a stable outlook. The credit
    rating of First Capital Realty was upgraded by DBRS to BBB (High) and by
    Moody's to Baa2 with a stable outlook and the credit rating Equity One was
    upgraded by Moody's to Baa2 with a stable outlook

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 Wednesday,
March 20, 2013 at 17:00 Israel Time, 5:00 pm Israel Time/ 4:00 pm Central
European Time/ 11:00 am Eastern Time, to review the fourth quarter and
year-end 2012 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), conference ID 12830993, 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.

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 New
York Stock Exchange (NYSE:GZT) and the Tel Aviv Stock Exchange (TASE:GLOB) and
is included in the TA-25 and Real-Estate 15 indices in Israel. Gazit Globe
owns and operates over 600 properties in more than 20 countries, with a gross
leasable area of approximately 6.8 million square meters and a total value of
more than $20 billion.

FOR ADDITIONAL INFORMATION

A comprehensive copy of the Company's annual report is available on
Gazit-Globe website at www.gazit-globe.com

Investors Contact: IR@gazitgroup.com, Media Contact: press@gazitgroup.com

Gazit-Globe Headquarters, Tel-Aviv, Israel, Tel: +972 3 6948000

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

Exchange rate as of December 31, 2012 of 1 USD = 3.733 NIS

Below please find excerpts from our 2012 Annual Report. For our full 2012
Annual Report in English, please go to
http://www.gazitglobe.com/financial-reports.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                                                 
                                                    December 31,   January 1,
                                                    2012   *)2011 *) 2011
                                                    NIS in millions
ASSETS                                                            
                                                                 
CURRENT ASSETS                                                    
Cash and cash equivalents                            1,683  1,539   692
Short-term investments and loans                     538    770     150
Marketable securities at fair value through profit   87     97      50
or loss
Available-for-sale financial assets                  14     67      42
Financial derivatives                                81     84      110
Trade receivables                                    744    656     126
Other accounts receivable                            216    291     202
Inventory of buildings and apartments for sale       712    697     --
Income taxes receivable                              15     14      68
                                                                 
                                                    4,090  4,215   1,440
Assets classified as held for sale                   1,482  714     50
                                                                 
                                                    5,572  4,929   1,490
                                                                 
NON-CURRENT ASSETS                                                
Equity-accounted investees                           4,713  4,390   3,694
Other investments, loans and receivables             713    308     117
Available-for-sale financial assets                  339    314     218
Financial derivatives                                929    937     1,087
Investment property                                  55,465 51,014  41,242
Investment property under development                2,806  2,198   2,266
Non-current inventory                                23     23      --
Fixed assets, net                                    187    157     99
Goodwill                                             100    101     110
Other intangible assets, net                         17     68      10
Deferred taxes                                       198    160     75
                                                                 
                                                    65,490 59,670  48,918
                                                                 
                                                    71,062 64,599  50,408
                                                                 
*)Retroactively adjusted due to adoption of new IFRS standards.



CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                                                 
                                                    December 31,   January 1,
                                                    2012   *)2011 *) 2011
                                                    NIS in millions
LIABILITIES AND EQUITY                                            
                                                                 
CURRENT LIABILITIES                                               
Credit from banks and others                         351    453     91
Current maturities of non-current liabilities        2,382  3,525   2,719
Financial derivatives                                12     25      37
Trade payables                                       914    819     302
Other accounts payable                               1,256  1,218   842
Advances from customers and buyers of apartments     257    277     --
Income taxes payable                                 52     53      33
                                                                 
                                                    5,224  6,370   4,024
Liabilities attributed to assets held for sale       168    103     --
                                                                 
                                                    5,392  6,473   4,024
                                                                 
NON-CURRENT LIABILITIES                                           
Debentures                                           18,500 15,379  13,768
Convertible debentures                               1,197  1,121   739
Interest-bearing loans from financial institutions   19,433 18,973  14,644
and others
Financial derivatives                                472    339     128
Other financial liabilities                          346    277     161
Employee benefit liability, net                      7      8       2
Deferred taxes                                       3,066  2,401   1,751
                                                                 
                                                    43,021 38,498  31,193
                                                                 
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY              
Share capital                                        219    218     208
Share premium                                        3,805  3,787   3,474
Retained earnings                                    4,699  3,904   3,422
Foreign currency translation reserve                 (913)  (728)   (1,313)
Other reserves                                       60     150     220
Loans granted to purchase shares of the Company      **)-- **)--  (4)
Treasury shares                                      (21)   (21)    (21)
                                                                 
                                                    7,849  7,310   5,986
Non-controlling interests                            14,800 12,318  9,205
                                                                 
Total equity                                         22,649 19,628  15,191
                                                                 
                                                    71,062 64,599  50,408
                                                                 
*)Retroactively adjusted due to adoption of new IFRS standards.
**)Represents an amount of less than NIS 1 million.



CONSOLIDATED STATEMENTS OF INCOME
                                                                  
                                              Year ended
                                               December 31,
                                              2012       *) 2011    *) 2010
                                              NIS in millions (except for per
                                               share data)
Rental income                                  5,249      4,718      4,147
Property operating expenses                    1,705      1,522      1,341
                                                                  
Net operating rental income                    3,544      3,196      2,806
                                                                  
Revenues from sale of buildings, land and      1,749      1,001      --
construction works performed
Cost of buildings sold, land and construction  1,665      967        --
works performed
                                                                  
Gross profit from sale of buildings, land and  84         34         --
construction works performed
                                                                  
Gross profit                                   3,628      3,230      2,806
                                                                  
Fair value gain from investment property and   1,913      1,670      935
investment property under development, net
General and administrative expenses            (648)      (733)      (569)
Other income                                   164        115        21
Other expenses                                 (47)       (110)      (46)
Group's share in earnings of equity- accounted 299        334        171
investees, net
                                                                  
Operating income                               5,309      4,506      3,318
                                                                  
Finance expenses                               (2,214)    (2,197)    (1,764)
Finance income                                 120        72         525
                                                                  
Income before taxes on income                  3,215      2,381      2,079
Taxes on income                                681        328        390
                                                                  
Net income                                     2,534      2,053      1,689
                                                                  
Attributable to:                                                   
Equity holders of the Company                  957        719        831
Non-controlling interests                      1,577      1,334      858
                                                                  
                                              2,534      2,053      1,689
                                                                  
Net earnings per share attributable to equity                      
holders of the Company:
Basic net earnings                             5.80       4.65       5.89
                                                                  
Diluted net earnings                           5.59       4.30       5.87
                                                                  
*)Retroactively adjusted due to adoption of new IFRS standards.



FFO (EPRA Earnings)

The table below presents the calculation of the Company's FFO, computed
according to the directives of EPRA and the guidelines of the Israel
Securities Authority, and its FFO per share for the stated periods:

                         For the                           For the 3
                        year ended                        months ended
                         December 31                       December 31
                        2012        *) 2011     *) 2010   2012      *) 2011
                        NIS in millions (other than per share data)
                                                                
Net income attributable
to equity holders of the 957        719        831      224      269
Company for the period
Adjustments:                                                     
Fair value gain from
investment property and  (1,913)     (1,670)     (935)     (441)     (843)
investment property
under development, net
Capital loss (gain) on
sale of investment
property and investment  5          63         (13)      8        22
property under
development
Impairment of goodwill   --         38         42       --       38
Changes in the fair
value of financial
instruments, including   (36)        179        (474)     (147)     74
derivatives, measured at
fair value through
profit and loss
Adjustments with respect
to equity-accounted      (43)        (131)       6        77       (7)
investees
Loss from decrease in    4          1          4        1        --
interest in investees
Deferred taxes and
current taxes with       668        324        382      228      149
respect to disposal of
properties
Gain from bargain        (134)       (102)       --       --       (18)
purchase
Acquisition costs
recognized in profit and 26         21         21       6        (3)
loss
Loss from early
redemption of            147        14         4        132      21
interest-bearing
liabilities
Non-controlling
interests' share in      685        646        273      83       337
above adjustments
Nominal FFO              366        102        141      171      39
Additional adjustments:                                          
CPI and exchange rate    94         133        115      (40)      (15)
linkage differences
Depreciation and         16         15         14       4        4
amortization
Adjustments with respect
to equity-accounted      2          67         (9)       (13)      30
investees
Other adjustments^1      55         88         98       15       53
FFO according to the     533        405        359      137      111
management approach
FFO according to the
management approach per  3.23       2.62       2.54     0.83     0.71
share (in NIS)
Number of shares used in
the FFO calculation^2 ^  164,912    154,456    141,150   165,136   155,817
(in thousands)
                                                                
*)^Retroactively adjusted due to the adoption of new IFRS standards.

^1Income 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
engagements with senior Group officers and also income and expenses from
operations not related to income-producing property, also, with regard to the
periods that are presented in 2011 and 2010 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.
^2Number of issued shares (weighted average for the period).

Exchange rate as of December 31, 2012 of 1 USD = 3.733 NIS

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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