Gazit-Globe Ltd. (NYSE: GZT; TASE: GZT; TSX: GZT) today reported higher profits on lower revenue for the third quarter of 2013. Rental income fell 7% to NIS 1.25 billion for the third quarter from NIS 1.35 billion for the corresponding quarter of 2012, due to changes in exchange rates. Excluding this effect, rental income rose by 3%. Net profit rose to NIS 334 million (NIS 1.89 per share) for the third quarter from NIS 187 million for the corresponding quarter.
Net operating income (NOI) fell 8% to NIS 854 million ($241 million) for the third quarter from NIS 928 million for the corresponding quarter, due to changes in exchange rates, but funds from operations (FFO) rose 4% to NIS 147 million ($42 million) (NIS 0.83 or $0.23 per share) from NIS 142 million.
Gazit-Globe made NIS 542 million in investments during the third quarter.
Cash flow from operations fell to NIS 413 million for the third quarter from NIS 568 million for the corresponding quarter, due to the sale of 12 Royal Senior Care properties in 2012. The fair value gain from investment property and investment property under development was NIS 113 million for the third quarter, compared with NIS 441 million for the corresponding quarter.
Gazit-Globe president Roni Soffer said, "As a result of our strategy in recent years to focus on large urban markets with strong demographics, we continued to grow and enhance our dominance in these regions. Our ownership of prime located, large A-type properties has increased substantially in the last five years. We have ample liquidity, a strong balance sheet and we are well positioned to take advantage of suitable business opportunities both in existing and new markets."
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2013
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