Azrieli Group presented a net operating income (NOI) of NIS 428 million in the third quarter

The economic recovery in the economy following the vaccination of the population against the coronavirus and the exit from the closures are reflected in the financial results of the real estate giant Azrieli Group, which is controlled by Dana Azrieli and her family.
The Azrieli Group, managed by Eyal Hankin, presented a net operating income (NOI) of NIS 428 million in the third quarter of the year, reflecting a growth of 22% compared to the corresponding quarter in 2020.
The increase in income is mainly due to the relief given to tenants in malls in the corresponding quarter of the year following the Corona crisis, as well as the occupancy of office towers in Azrieli Town in Tel Aviv and Manor Towers in Holon. The Same Property NOI, ie net operating income from assets owned by the company in the third quarter of this year and last year, grew by about 16% compared to the third quarter of 2020.
The cash flow operating profit (FFO), excluding the contribution of sheltered housing and less one-time effects, amounted to NIS 315 million in the third quarter, an increase of 21% compared to the corresponding quarter in 2020. The total FFO in the past quarter amounted to NIS 357 million, an increase of 27% compared to the corresponding quarter last year.
However, due to the increase in management and marketing expenses and the lack of positive revaluations in the value of the assets, the net profit attributed to shareholders amounted to NIS 187 million in the third quarter, a decrease of 3.1% compared to the corresponding quarter in 2020. The total profit amounted to NIS 273 million, compared with NIS 108 million, a jump of 2.5 times compared to the same period last year. The net profit in the first nine months of the year amounted to NIS 680 million, which is 3.2 times more than in the corresponding period in 2020.
During the third quarter, Azrieli invested NIS 153 million in real estate for investment, purchase, initiation, construction of new properties, upgrading and improving existing properties. Since the beginning of the year, it has already invested NIS 643 million in real estate. In addition, the group invested NIS 2.4 billion in the acquisition of Green Mountain, a company active in the field of data centers in Norway.
Hankin said after the publication of the reports that "we conclude a strong quarter with growth in all operational parameters, along with significant investment activity amounting to more than NIS 3 billion since the beginning of the year. The office sector continues to enjoy awake demand with an impressive 6% growth in NOI from identical properties, and alongside it trading activity continues the positive trend we see since the reopening of the malls, with growth in redemptions compared to the same period in 2019. "The field of sheltered housing continues to be a significant growth engine in the group's activities with the completion of marketing at Palace Modiin and the advancement of the construction of Phase II at Palace Blades."