Gazit-Globe Ltd. (TASE: GLOB) posted double-digit net operating income (NOI) and funds from operations (FFO) growth for the third quarter of 2011. NOI rose 14% to NIS 885 million for the third quarter from NIS 775 million for the corresponding quarter, and FFO rose 28% to NIS 110 million (NIS 0.71 per share) from NIS 86 million. The company, controlled by chairman Chaim Katzman, will distribute a dividend of NIS 60.2 million.
Rental income rose 15% to NIS 1.31 billion for the third quarter from NIS 1.14 billion for the corresponding quarter. Net profit attributable to majority shareholders fell to NIS 169 million (NIS 1.09 per share) for the third quarter from NIS 197 million for the corresponding quarter.
The company's share of fair value gain on its properties (including properties under development) was NIS 149 million for the third quarter, compared with a fair value loss of NIS 247 million for the corresponding quarter. Gazit-Globe and its subsidiaries bought 34 properties during the third quarter, bringing the total to 660 properties in 20 countries, and had 15 properties under construction as of the end of September.
Gazit-Globe, through its subsidiaries in Israel, Europe, North America, and Brazil made NIS 1.83 billion in investments during the third quarter, compared with NIS 735 million in investments during the corresponding quarter.
Gazit-Globe and its subsidiaries had NIS 7.7 billion in cash and undrawn revolving credit facilities at the end of September, of which NIS 1.7 billion was held directly by the company. The company reduced its loan-to-value (LTV) ratio to 59.7% at the end of September from 62.5% a year earlier.
Gazit-Globe president Roni Soffer said, "We have declared a dividend policy for 2012 of an annualized dividend of NIS 1.60 per share. This is the thirteenth year in which we have increased our dividend to our shareholders which is now being distributed for more than 50 consecutive quarters."
Gazit-Globe's share price rose 0.2% in early trading today to NIS 39.86, giving a market cap of NIS 6.14 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2011
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