Income producing real estate company Reit 1 (TASE: RIT1) is raising NIS 50 million in a placement of 2% of its shares with pension funds and provident funds of investment house Altshuler Shaham.
Altshuler Shaham already holds an 8.7% stake in the company through its mutual funds and provident funds. The current placement is at NIS 14.90 per share, 1% below the price before today's opening on the Tel Aviv Stock Exchange.
Reit1 is run by president and CEO Shmuel Sayad. It has no controlling shareholder. Other significant shareholders besides Altshuler Shaham are the provident funds of Menorah Mivtachim Holdings Ltd. (TASE: MORA) (7.3%); Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), through its provident funds, mutual funds, and ETFs, and directly (7.4%); Psagot (7.2%); The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) (3.3%); and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) (2.5%).
In the first half of this year, Reit1 had net operating income of NIS 144 million, 10% more than in the first half of 2017. FFO grew 14% to NIS 108 million, while net profit fell 8% to NIS 99 million.
Reit 1 was founded in 2006 as a real estate investment trust that distributes most of its profits as dividends. The company's current dividend yield is 4.3%. It holds 37 properties with total space of 486,000 square meters, mostly in high demand areas in central Israel. Average occupancy is 97.7%. It has a market cap of NIS 2.6 billion after a 13% rise in its share price in the past year.
Published by Globes [online], Israel business news - www.globes-online.com - on September 16, 2018
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