Israeli income producing property company Azrieli Group Ltd. (TASE: AZRG) CEO Eyal Henkin has said that the 40-floor Tel Aviv office project has been fully leased 18 months before completion. Azrieli Town is part of an office and residential complex being built north of the Azrieli Center.
Henkin made his comment as part of the company's second quarter financial results. said, "We are concluding another positive quarter with growth in all of the parameters. The office sector continues to enjoy strong demand in Israel, and we recently signed a contract for the lease of the remaining vacant space of approx. 9,000 square meters in Azrieli Town. The building is now fully leased-up, around one and a half years before completion of construction.
He added, "In the retail and malls sector, we are witnessing the continued positive trend which is for us tangible evidence of the importance of the investments that we have made and continue to make to adapt the malls to the constantly changing business environment and retail market. We recently announced two important transactions. In the first transaction, we took an additional step in realizing our strategy of focusing on our core business through the sale of Supergas in a transaction which reflects our significant improvement of Supergas over the years. We further announced an investment in a company in the global Data Centers industry, which is at the heart of our income-producing real estate business, and presents attractive yields and significant growth potential. We believe that a large and dominant company such as Azrieli Group, with its extraordinary financial positioning, should always look into new business opportunities in line with the Company's business strategy of developing its core business."
Net profit was up 41% to NIS 332 million in the second quarter of 2019 compared with NIS 236 million in the corresponding quarter of 2018. NOI increased by 5%, totaling NIS 400 million, compared with NIS 380 million last year and FFO was up 21%, totaling NIS 327 million, compared with NIS 271 million last year. FFO excluding senior housing up 5.2%, totaling NIS 282 million, compared with NIS 268 million last year.
Azrieli Group chairman is Danna Azrieli.
Published by Globes, Israel business news - en.globes.co.il - on August 14, 2019
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