The Azrieli Group Ltd. (TASE: AZRG) reported Wednesday strong earnings for the second quarter, with a 9% increase in net operating income to NIS 306 million and a 12% growth in FFO to NIS 217 million.
The net income for shareholders totaled NIS 246 million in Q2 compared to NIS 199 million in the same quarter last year (not including the effect of the Tambour sale).
Azrieli Group CEO Yuval Bronstein said, "The development boom in Israel is continuing according to plan. In 2015 we have seen a rise in tenants’ revenues in the malls, as well as significant demand for our offices in the Azrieli Towers in Tel Aviv, in the Herzliya park and in the projects under construction in Sarona, Rishonim and Holon. Recently we completed the purchase of the Palace Tel Aviv senior housing facility, and launched the marketing of the Azrieli Palace project in Modi'in in which potential tenants are showing a lot of interest."
He added: "We are also continuing to implement financial streamlining measures, including the refinancing of existing loans and raising of new debt, that are reflected in significant reductions in our financing costs, in addition to our actions for the disposition of non-real estate holdings."
Azrieli Group Chairwoman Danna Azrieli said, "the second quarter results clearly demonstrate the power of the group in all the sectors it is involved, while showing continuous growth of its core operations… and outstanding development momentum to the tune of NIS 5 billion. Our strategic focus and our vast managerial experience help us to successfully contend with current challenges while building future engines for growth."
During Q2, the Group spent NIS 247 million on investment properties, the refurbishment of current properties, and the construction of new properties. Since the beginning of 2015, NIS 602 million was invested in real estate.
The Azrieli Group has 8 projects totaling 507,000 sq. m. at an investment of more than NIS 5 billion which are expected to add hundreds of millions of shekels to the NOI over the coming years.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2015
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