Azrieli Group (TASE: AZRG) CEO Eyal Chenkin is stepping down from the management of the shopping malls and offices group and will be appointed CEO of the group’s overseas data centers business. Azrieli Group plans to form a London-based subsidiary in which all of its data centers business will be concentrated. This field has become an important growth engine for the group. Chenkin will end his term as CEO of Azrieli Group towards January 2025 and will take up the new position in the overseas company. The switch will take place when a suitable replacement for him is found, and after a handover period.
Chenkin has been a manager at Azrieli Group for fifteen years, eight of them as CEO of subsidiary Supergas Israel Gas Distribution Co, and, since 2018, as group CEO. Azrieli Group chairperson Danna Azrieli said, "Eyal has accumulated great expertise and experience in the field during his term as CEO of the group. He has successfully led and overseen the group’s investments in the field and its development. Within a short time, it has become an important growth engine for the group, alongside the other growth engines in income producing real estate in Israel."
First half net profit down 22%
The announcement of Chenkin’s new role comes after the release of Azrieli Group’s financials for the second quarter of 2024. Quarterly revenue was NIS 889 million, 27% less than in the second quarter of 2023. The decline stemmed from a drop in gains on revaluations of the group’s investment real estate from NIS 491 million in the corresponding quarter to NIS 65 million in the current quarter.
As a result, net profit attributable to shareholders totalled NIS 156 million in the second quarter of 2024, down 63% from the corresponding quarter. For the first half year, net profit was NIS 620 million, 22% less than in the first half of 2023.
Azrieli says that proceeds at its malls showed recovery in the second quarter, rising by 10% in comparison with the corresponding quarter, and by 8% in the March to June period in comparison with the same period last year. In July, with the beginning of school vacations, proceeds rose by 4% in comparison with July last year.
Azrieli is the seventh largest company on the Tel Aviv Stock Exchange in terms of market cap. At the opening of trading this morning, its market cap was NIS 30 billion, after a 26% rise in its share price in the past year. So far today, the share price is down 3.72%.
Published by Globes, Israel business news - en.globes.co.il - on August 19, 2024.
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