Israeli income producing property company Azrieli Group Ltd. (TASE: AZRG) reported strong results for the first quarter of 2021, even though malls were closed for 57% of the quarter during the third lockdown.
Net profit was NIS 110 million, up 20% from NIS 93 million in the corresponding quarter of 2020. NOI in the first quarter of 2021 totaled NIS 301 million, up 34% from the previous quarter and down 27% from the corresponding quarter. FFO in the first quarter amounted to NIS 228 million, up 7% from the previous quarter and down 25% from the corresponding quarter.
Azrieli Group CEO Eyal Henkin said, "We are experiencing a strong exit from Covid-19, with high occupancy rates in all of the Group's properties, record store revenues in malls, strong demand for offices, and significant transactions in income-producing real estate. With the re-opening of retail towards the end of February, we saw a major leap in store sales and footfall in all of the Group's properties, which we find highly encouraging looking at the rest of the year and the performance of this segment in general.
He added, "The office segment continues to demonstrate strong results, and we have recently announced several exceptional transactions that serve as another indication for the segment's strength. Over the course of Q1, we felt the increasing contribution of the office buildings in HaManor Holon and Azrieli Town Tel Aviv, and we are in the process of working to prepare the Triangular Tower in Tel Aviv for the new tenants who are expected to move in starting next year, as Bezeq had moved out and relocated to HaManor. At the same time, we are continuing to promote the Group's future growth drivers and are looking forward to the opportunities with which we are presented."
After the balance sheet date, Azrieli signed three major deals in the office segment: Leases for 13,500 square meters in Azrieli Center's Triangular Tower and another 14,000 square meters in the Spiral Tower with fintech company Rapyd, and an agreement for construction of the new campus in Herzliya for solar energy company SolarEdge.
Published by Globes, Israel business news - en.globes.co.il - on May 26, 2021
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