Gav Yam Reports Third Quarter 2021 Results

·11 min read

TEL AVIV, Israel, Oct. 27, 2021 /PRNewswire/ — Gav Yam Land Corporation Ltd. (TASE: GVYM) one of Israel's largest and longest established real estate companies, specializing in the initiation, planning, development, construction, leasing, maintenance and management of hi-tech, logistics, and industrial parks and centers throughout Israel, today reported its financial report for the third quarter and the first nine months of 2021. 

The results reflect a full return to routine, continued stability and growth across all operational parameters, and a significant acceleration in intensive entrepreneurial activity, including 13 projects, with a total area of 660,000m² (of which 500,000m² are the Company's share in the Company's consolidated financial statement), with a total investment of about NIS 4.5 billion (the Company's share in the consolidated financial statement). About 25% of the above-ground areas in these projects have been already marketed.

Financial Highlights

  • Net profit attributed to shareholders amounted to NIS 695 million in the first nine months of 2021, compared with NIS 172 million, last year. The increase is mainly due to growth in income from the increase in the fair value of investment in real estate compared to the corresponding period last year. 

  • The Company's cash flow from operating activities in the first nine months of the year amounted to NIS 364 million, an increase of 14% compared with the corresponding period last year. 

  • • The Company's rental income in the first nine months of 2021 amounted to NIS 408 million, compared with NIS 401 million in the corresponding period last year. 

  • • The Company's NOI in the first nine months of the year amounted to NIS 391 million, compared with NIS 388 million in the corresponding period last year. 

  • • EBITDA in the first nine months of 2021 amounted to NIS 363 million, compared with NIS 361 million in the corresponding period last year. 

  • • The FFO attributed to shareholders amounted to NIS 193 million in the first nine months of the year, an increase of 6.6% compared with the corresponding period last year.

Management Comment

Avraham Jacobovitz, CEO of Gav-Yam, commented: "High-tech companies, within the context of Israel as a leading technological power, established new development centers and hired employees at high intensity, which led to continued growth and lead market trends."

"Strong market demand continues and is driving the real estate industry forward and is leading to accelerated growth in the office space. New areas are being absorbed already during the construction stages. The office market in Tel Aviv and Herzliya are at the forefront and leading the trend, and it is expected to strengthen and grow in the coming years. High-tech companies have chosen to be an integral part of the Tel Aviv metropolitan and Herzliya area and lead the demand as part of a structured process, relying on high-quality human capital that is the main backbone of high-tech companies. Within the complex of Tel Aviv and Herzliya, the Toha1 and Toha2 towers and the Gav-Yam centers in Herzliya, constitute a central focus for the office market, in addition to other high-tech parks of Gav-Yam, and meet demand."

"Gav-Yam is seeing very strong demand, examining many deals and participating in all the tenders of international technology companies."

"Gav-Yam continues with great intensity on a very clear route of large-scale and intensive entrepreneurial activity, which includes 13 projects, with a total area of ~660,000 m² (~500,000m², in terms of the Company's share in the consolidated financial statement), with a total investment of ~NIS 4.5 billion (the company's share in the consolidated financial statement)."

"The highlight is the ToHa2 project, with a total area of 210,000 m² (~105,000 m² the Company's share), a mega-project that is the spearhead of the Company's operations. We anticipate widespread demand in this project, at high rental prices."

"With the completion of these projects and their occupancy by the end of 2026, the Company's revenues will gradually increase to ~NIS 950 million per year. 25% of the above-ground areas in these projects have already been marketed."

In the first nine months of 2021, the company signed 123 leases, with an average real increase in rents of about 7.4% (in existing properties). "

Company Summary

Gav-Yam has 1,034,000m² of properties, with a wide spread, both in geographic and sectoral terms across 19 cities around Israel, including 22 parks and high-tech centers, offices, logistics, industry and commerce. They are adjacent to main arteries, Class A premium buildings, with high LEED standards. In addition, the Company has reserves of available building rights, amounting to ~490,000 m².

The Company has about 430 customers, including large international companies, top-tier, as well as the largest technology corporations in the world. As of the end of 2020, the Company's backlog of signed lease agreements amounted to NIS 2.3 billion for income-producing properties, and NIS 2.75 billion including signed lease agreements for construction projects. The lease agreements last for an average of about 4.4 years.

The Company showed continued stability in all operational parameters and financial strength, which is reflected in cash balances of ~NIS 1.2 billion, leveraged at a rate of 51.2%, a debt-rating of AA by Maalot (S&P Israel affiliate), and 100% of the Company's assets are non-collateralized. The Company continued a trend of stability in occupancy levels of occupancy and rent increases.

The Company has strategic partnerships with the leading academic institutions in Israel. This is the next good news, which brings the highest quality technological manpower – both quantity and quality. Gav-Yam significantly deepens its activities and collaborations, which include, among others, the Hebrew University of Jerusalem, Ben-Gurion University of the Negev and the Weizmann Institute.

Gav-Yam has set itself the goal of expanding its activities in the field of logistics and industry centers, an expanding area, which is a stable anchor with great demand and is marked as one of the future engines for growth. Gav-Yam is currently initiating four projects in this field, with a total area of ~75,000 m², of which 65% have been marketed.

About Gav-Yam

Gav-Yam Land Corporation Ltd. is one of Israel's largest, longest established real estate companies.

The company specializes in the initiation, planning, development, construction, leasing, maintenance, and management of hi-tech, logistics, and industrial parks and centers nationwide, as well as in the construction of dedicated complexes planned for long-term leasing. Through a wholly owned subsidiary, Gav-Yam also provides a variety of maintenance management services to tenants throughout the leasing period.

Gav-Yam was founded in 1928, and has been listed on the Tel Aviv Stock Exchange since 1978. Today, the company's shares are included among the leading indices of real estate (Tel-Bond 60) and large companies (TA-125). In addition, the company's debentures are rated AA by S&P Maalot and Aa2 by Midroog.

Contact Information

 


Investor Relations Contacts

GK Investor & Public Relations

Ehud Helft

+1 212 378 8040

gavyam@gkir.com

Company Contact

Mark Zack

CFO

+972 4 66 44 222

mark@gav-yam.co.il

 

 

Condensed Consolidated Interim Statement of Financial Position






September 30

September 30

December 31


2021

2020

2020


(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands





Assets




Cash and cash equivalents

304,641

1,968,386

1,715,381

Short-term investments and deposits

864,454

594,826

823,674

Trade receivables

6,199

5,330

4,480

Other receivables

234,469

91,670

104,631

Current tax assets

14,847

215

427





Total current assets

1,424,610

2,660,427

2,648,593





Long term receivables

57,782

57,537

48,371

Investments and loans in equity-accounted investees

239,388

151,382

194,442

Fixed assets, net

54,372

49,547

48,852

Assets in respect of usage right

2,165

738

972

Intangible assets, net

964

4,207

4,149

Inventory of real estate

-

134,857

134,807

Investment property under construction

818,753

310,370

549,401

Investment property

8,673,025

7,748,677

7,670,094





Total non-current assets

9,846,449

8,457,315

8,651,088





Total assets

11,271,059

11,117,742

11,299,681

 

 

 

Condensed Consolidated Interim Statement of Financial Position



September 30

September 30

December 31


2021

2020

2020


(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands





Liabilities








Loans and borrowings

610,128

722,557

722,557

Other payables

146,026

158,324

157,431

Current tax liabilities

11,906

10,094

15,977

Liabilities for construction services

109,994

61,655

146,566





Total current liabilities

878,054

952,630

1,042,531





Debentures

4,885,790

5,460,024

5,440,699

Liabilities for construction services

144,004

216,720

127,689

Employee benefits, net

982

754

982

Lease obligation

53,388

155

53,206

Deferred taxes

1,179,327

1,000,987

1,018,589





Total non-current liabilities

6,263,491

6,678,640

6,641,165





Total liabilities

7,141,545

7,631,270

7,683,696





Capital








Share capital

169,585

169,578

169,578

Capital reserves

307,686

304,123

304,868

Retained earnings

2,735,435

2,212,189

2,300,008





Total capital attributed to owners of the Company

3,212,706

2,685,890

2,774,454





Non-controlling interests

916,808

800,582

841,531





Total capital

4,129,514

3,486,472

3,615,985





Total liabilities and capital

11,271,059

11,117,742

11,299,681





 

 

 

Condensed Consolidated Interim Statement of Income



Nine months ended

Three months ended

Year ended


September 30

September 30

December 31


2021

2020

2021

2020

2020


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands







Revenue












Rental income

408,358

401,031

138,908

134,061

533,924

Increase in fair value of investment property

756,277

23,357

183,246

-

109,020

Management fees

7,587

8,575

2,718

3,016

11,793

Other

94,518

28,402

80,148

1,786

32,686








1,266,740

461,365

405,020

138,863

687,423







Expenses












Property maintenance

27,307

23,874

9,882

8,569

32,789

Selling and marketing

7,068

6,356

2,723

2,026

7,929

General and administrative

26,403

25,493

8,345

8,409

33,027

Other

24,452

30,657

8,107

4,844

38,276








85,230

86,380

29,057

23,848

112,021







Operating profit

1,181,510

374,985

375,963

115,015

575,402







Financing expenses, net












Financing income (expenses)

6,298

(16,075)

1,696

634

(13,071)

Financing expenses

(180,135)

(97,614)

(60,588)

(41,060)

(142,569)







Financing expenses, net

(173,837)

(113,689)

(58,892)

(40,426)

(155,640)







Share in profits of equity accounted investees

22,491

7,283

4,029

2,796

14,609







Profit before taxes

1,030,164

268,579

321,100

77,385

434,371







Taxes on income

219,540

66,935

68,841

17,123

103,752







Net profit for the period

810,624

201,644

252,259

60,262

330,619







Attributable to:












Owners of the Company

695,427

172,129

235,226

47,356

260,141

Non-controlling interests

115,197

29,515

17,033

12,906

70,478







Net profit for the period

810,624

201,644

252,259

60,262

330,619







Earnings per share attributable to owners of the Company












Basic earnings per share (in NIS)

324.98

80.55

109.67

22.16

1.22

Diluted earnings per share (in NIS)

315.37

80.37

106.44

22.11

1.21

 

 

 

Condensed Consolidated Interim Statement of Comprehensive Income



Nine months ended

Three months ended

Year ended


September 30

September 30

December 31


2021

2020

2021

2020

2020


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands





Net profit for the period

810,624

201,644

252,259

60,262

330,619

Items of other comprehensive income
not to be transferred to profit or loss












Actuarial losses from a defined benefit plan

-

-

-

-

(269)







Tax benefits for items of other






comprehensive income

-

-

-

-

62







Other comprehensive loss






for the period, net of tax

-

-

-

-

(207)







Total comprehensive income






for the period

810,624

201,644

252,259

60,262

330,412













Attributable to:












Owners of the Company

695,427

172,129

235,226

47,356

259,948







Non-controlling interests

115,197

29,515

17,033

12,906

70,464







Total comprehensive income






for the period

810,624

201,644

252,259

60,262

330,412







 

 

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SOURCE Gav-Yam

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