Azrieli Group Ltd. (TASE: AZRG) reported lower profit for the second quarter of 2014.
NOI was up 1.5% to NIS 281 million in the second quarter of 2014 from NIS 277 million in the corresponding quarter last year. Same-property NOI was NIS 280 million, up 1% from NIS 276 million in the corresponding quarter last year. FFO attributed to the real estate business was NIS 193 million, up 4% from NIS 186 million in the corresponding quarter last year. Equity attributed to shareholders was NIS 12.8 billion at the end of the second quarter compared with NIS 12 billion on June 30, 2013.
During the second quarter, Azrieli Group invested NIS 201 million in acquisitions, improvement of existing properties and the construction of properties under development. Since the beginning of 2014 such investments have totaled NIS 440 million.
Net profit for shareholders was NIS 258 million in the second quarter, compared with NIS 274 million in the corresponding quarter in 2013, primarily because of a more moderate increase in investment property value. Comprehensive income for shareholders was NIS 244 million, compared with NIS 231 million in the corresponding quarter in 2013.
Azrieli Group CEO Yuval Bronstein said, "The Azrieli Group continues to display good performance also in the current challenging business environment. Our performance reflects continued growth and improvement in NOI, FFO and all operating metrics. The Group's growth strategy, which focuses on improving our income-producing properties and expanding our portfolio through acquisitions and development, is reflected in our investment of about NIS 200 million in Q2-2014 and in significant progress on the development pipeline, which will begin to contribute to NOI in 2015: These include the continued lease-up of Stage A at the Azrieli Holon Center and the completion of construction of Stage B, continued progress in the construction of Azrieli Ramla Mall, progress in Azrieli Sarona Center in Tel Aviv, the Group’s flagship project, and progress in the complex construction of the second floor at the Ayalon Mall. At the same time, the Group is working on reducing its costs, including the financing costs, by taking advantage of the favorable interest environment in the Israeli market to refinance existing loans and raise financing for the Group’s development momentum."
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2014
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