1. A GLOBAL REAL ESTATE PLATFORM
Gazit-Globe | Company Presentation | December 2012
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2. Disclaimer
This presentation may include forward-looking statements, including forecasts, evaluations, estimates and other information relating to future
events and issues. Forward-looking statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other
financial items. Forward-looking statements may also relate to our business strategy, goals and expectations concerning our market position, future
operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and
can be identified by the use of forward-looking terminology such as the words "anticipate", "believe", "could", "estimate", "expect", "intend",
"may", "plan", "predict", "project", "will" and similar terms and phrases.
Any forward-looking information contained in this presentation is based, in addition to existing information of the company, on present company
expectations and evaluations regarding future developments and trends and on the interaction of such developments and trends. Although we
believe the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be
inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our business and operations involve risks and
uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of
operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current
expectations and are not guarantees of future performance.
Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in this presentation
depending on a variety of factors including those described in greater detail in our Periodical and Annual Reports, Registration Statement on Form
F-1, Annual Report on Form 20F and in other information we file and furnish with the Israel Securities Authority and the Securities and Exchange
Commission, including under the heading “Risk Factors.”
All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the
previous statements. Except for any obligations to disclose information as required by applicable securities laws, we undertake no obligation to
update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to
reflect events or circumstances that occur, or that we become aware of, after the date of this presentation.
The information contained herein does not constitute a prospectus or other offering document, nor does it constitute or form part of any invitation
or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Gazit-Globe Ltd. or any other entity, nor
shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any action, contract,
commitment or relating thereto or to the securities of Gazit-Globe Ltd.
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3. A Global Real Estate Platform
Listed on the Tel-Aviv Stock Exchange (TASE: GLOB) & New York Stock Exchange (NYSE: GZT)
Focused on supermarket-anchored shopping centers
NIS 77.4 billion ($US 19.8 billion) in assets under management, over 600 properties
Approximately NIS 6.9 billion ($US 1.75 billion) in annual rent, more than NIS 18 million per day
6.6 million sqm of GLA, approximately 15,000 lease agreements
Approximately NIS 280 million in annual dividend for 2013, NIS 1.72 per share (Approx. $ 0.44)
Domestic Credit Rating: Aa3 Stable (Midroog, Moody’s subsidiary), ilA+ Stable (S&P Maalot)
LOCATION Based on consolidated numbers including Atrium
3 LOCATION Numbers in USD are presented based on the exchange rate as of September 30, 2012 of 1 USD = 3.912 NIS
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4. Think Global, Act Local
(TASE: GLOB, NYSE: GZT) As of September 30, 2012
(NYSE: EQY) 45.5% (TSX: FCR) 45.6% (NASDAQ OMX: CTY1S) 48.6% (VSX/Euronext: ATRS) 34.5% (*)
100% 100% 75% 100%
(TASE: DORI) 55.4%
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(*) The Company has a shareholders’ agreement with CPI, a real estate fund that is part of the Apollo Global Real Estate Management L.P.
LOCATION Group that holds, to the best of the Company’s knowledge, approximately 19.4% of the share capital of ATR
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5. Up & Running Growth Engine
Total Assets
(NIS billions)
77.4
70.8
57.2
55.2
44.4
38.3
27.0
21.0
15.6
10.6
1.0 4.4
1991 1998 2000 2002 2004 2005 2006 2007 2008 2009 2010 2011 Q3 2012
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Since 2007, the Company’s financial statements are prepared in accordance with the IFRS. Based on IFRS, investment property
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6. Demonstrated Long-Term Value Creation
Average Annual Return of Approximately 18% from 2000
1,000
800
600
400
200
0
31-Dec-99 31-Dec-00 31-Dec-01 31-Dec-02 31-Dec-03 31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11
Gazit-Globe TA-100 S&P EPRA Global
Consistent & Growing Dividends for Over a Decade
2.00
1.72
Dividend Per Share (NIS)
1.56 1.60
CAGR 1.42 1.48
1.50
11.2% 1.24
1.00 1.08
1.00 0.89
0.71 0.76
0.57 0.64
0.39 0.47
0.50
0.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 E
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LOCATION (*) Data from January 2000 to November 2012
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7. Global Strategy, Business Focus, High Growth Potential
Stockholm Tallinn
Toronto
San Francisco Warsaw
Bay Area Boston Prague
New York
Los Angeles
Miami
Tel Aviv
Rio Grande do Sul Sao Paulo
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8. Strong Urban Locations with High Barriers to Entry
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Westbury Plaza , Long Island, NY, USA
9. Strong Demographics in High Growth Markets
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Serramonte Shopping Center, San Francisco, USA
10. Necessity Driven Asset Class
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The Biewind & Tupper Buildings, Tufts Medical Center Campus, Boston, USA
13. Proactive Asset Management
Repositioning of Property &
Properties Adjacent Land
Acquisition
Redevelopment New
of All/Part of the Tenants Expanding
Retail Shopping & Existing
Centers Anchor Properties
Tenants
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14. Development & Redevelopment
Region Number of Total Investment Cost to Complete
Assets as of September 30, 2012 )NIS millions(
(NIS millions)
North America 33 3,465 1,228
Europe 5 469 385
Brazil 1 137 (*)
Israel 1 36 5
Total 40 4,107 1,618
Investments in development and re-development of more than NIS 9.0 billion over the past 5 years
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14 LOCATION (*) The project is in the planning stage and has yet to be approved by the authorized organs of the Company
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15. Strategy in Action
Investment
opportunities
Proactive and Economies of
efficient operation Scale
at all levels
High liquidity Improving
& strong the cost of
balance sheet capital
Professional
human
capital
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16. 99% of NOI comes from Investment Grade Rated Countries
1%
15%
84%
AA+ Countries and Above Other Investment Grade Countries Below Investment Grade Countries
AAA AA+ AA- A+ A A- BBB BB+ BB
United
Canada Estonia Israel Slovakia Poland Lithuania Romania Hungary
States
Czech
Finland Russia
Republic
Germany Brazil
Sweden Latvia
Denmark
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16 LOCATION Source: Bloomberg /Standard & Poor ‘s )Foreign Rating/Long-Term Debt)/ Debt)/ December 2011
Source: Bloomberg/ Standard & Poor ‘s )Foreign Rating/Long-Term November 2012
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17. Organic Growth - Global Diversification
Resilient Assets with Stable Occupancy 1-9/2012 Same Property NOI Growth(*)
98.9% 98.9%
96.2% 96.2% 5.8% 6.0%
94.9%
94.0% 94.3% Q3/2011 3.9%
93.3%
2.2%
Q3/2012
North America Europe Israel Total North America Europe Israel Total
Strong tenants mix - Supermarkets, Necessity-Driven Retailers and Other High Quality Tenants
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LOCATION (*) Excluding foreign exchange fluctuation
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18. External Growth - Investment Activity, NIS 4.35 billion
Total Investments
(NIS million) 7-9/2012 1-9/2012
New properties acquisition 1,202 3,063
Development & redevelopment 301 1,291
Total 1,503 4,354
Dispositions and recycle of capital 476 1,413
7-9/2012 1-9/2012
32% Canada 1%
30%
Europe
USA
56% 56%
Israel
12%
13%
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19.
20. Liquidity and Financial Strength
The Group has liquid assets available and undrawn lines of credit in the amount of NIS 8.3 billion
(of which approximately NIS 2.4 billion is on the Company level)
As of September 30, 2012, net debt to total assets (LTV) was 55.6%, as compared to 60.0% as of
September 30, 2011 and 58.0% as of December 31, 2011
Year to Date, the Group has raised approximately NIS 1.9 billion in equity
Year to Date, the Group has raised approximately NIS 4.8 billion in debentures, convertible debentures
and other loans
During and subsequent to the reporting period the credit rating of Atrium was upgraded by S&P and
Fitch to investment grade level of (BBB-) with a stable outlook and the credit rating of First Capital
Realty was upgraded by DBRS to BBB (High) and by Moody’s to Baa2 with a stable outlook
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22. Currency Matching Policy
Currency Diversification Lowers FX Risk
Assets Shareholders’ Equity
2%
8% 30%
23% 35%
35%
33%
34%
CAD $ Euro US $ NIS
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23. NOI Diversification Across Leading Economies
NOI Diversification (*)
5% 1%
Canada
26% 33%
Europe
USA
Israel
Brazil
35%
3% 2% 1%
11%
3%
4%
5% 6%
Finland Poland Sweden Russia
Czech Rep. Baltics Germany Other
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23 LOCATION (*) Based on proportional consolidated NOI for the three months ended September 30, 2012
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24. Increase in FFO while Deleveraging – Q3/2012
25% 29% 21%
0.86
142
8,321
6,642 0.71
110
LTV
60.0%
LTV
55.6%
Q3/2011 Q3/2012 Q3/2011 Q3/2012 Q3/2011 Q3/2012
Shareholder Equity (*) FFO FFO Per Share
(NIS millions) (NIS millions) (NIS)
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LTV – Net Debt to Total Asset
24 LOCATION (*) Retroactively adjusted due to the implementation of new accounting standards (2011 numbers)
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25. Upgrading the Portfolio while Increasing NOI
5%
14% 14%
6.99 6.61 928 1,352
811 1,181
Q3/2011 Q3/2012 Q3/2011 Q3/2012 Q3/2011 Q3/2012
GLA NOI (*) Rental Revenues (*)
(Square meter, millions) (NIS millions) (NIS millions)
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25 LOCATION (*) Retroactively adjusted due to the implementation of new accounting standards (2011 numbers)
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26. Consistent Growth
Strong התפעולייםOperational Parameters (*)
)*( Growth in צמיחה חזקה בפרמטרים
+14% +14%
1,352
928
1,248 1,259 1,268
849 865
840 1,181
811
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
NOI (NIS millions) Rental Revenues (NIS millions)
) ובתזרים מפעולות למניהFFO( FFO Per Share צמיחה
Increase in FFO and בתזרים מפעולות
+29% +21%
126 138 142 0.86
0.84
110 111 0.71 0.71 0.76
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
FFO (NIS millions) FFO Per Share (NIS)
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26 LOCATION (*) Retroactively adjusted due to the implementation of new accounting standards (Q1/12 & 2011 numbers)
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27. Consistent Growth in NAV Per Share
EPRA NAV (*) and Equity Per Share
Equity Per Share EPRA NAV Per Share
CAGR +16% CAGR +28 %
59.7
49.4 50.4
44.4
38.6 38.8
2010 2011 Q3/2012
Epra NAV Per Share Equity Per Share
From 2010 to Q3/2012 the dividends paid by the Company totaled NIS 650 million, NIS 4.2 per share
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27 LOCATION (*) Retroactively adjusted due to the implementation of new accounting standards (2010 & 2011 numbers)
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29. Gazit-Globe – Shareholders
Institutional Investor
5.2%
Public and others Norstar
38.5% 56.3%
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