Azrieli Group Ltd. (TASE: AZRG) today published its results for the fourth quarter of 2016 and the entire year. The company's net profit totaled NIS 1.8 billion in 2016, more than double its NIS 828 million net profit in 2015. Fourth-quarter net profit surged to NIS 610 million, compared with NIS 288 million in the corresponding quarter in the preceding year. Operating profit rose from NIS 1.3 billion in 2015 to NIS 1.9 billion in 2016, a 44% increase.
Azrieli Group reported growth in all parameters. Funds from operation (FFO) grew from NIS 870 million in 2015 to NIS 948 million in 2016, a 9% rise. Fourth-quarter FFO totaled NIS 244 million, compared with NIS 222 million in the fourth quarter of 2015. 2016 net operating income (NOI) amounted to NIS 1.3 billion, up 5%, compared with NIS 1.2 billion in 2015, and fourth-quarter NOI reached NIS 338 million, compared with NIS 323 million in the fourth quarter of the preceding year.
The group reported that leases had been signed or draft leases drawn up for signing for 95% of the office space in the Azrieli Sarona building and 78% of the office space in Azrieli Rishonim. The group launched the Azrieli Rishonim mall, located in Rishon Lezion, only last week.
The group's proceeds rose 5% in 2016, and it invested NIS 2.5 billion in the purchase of properties, development, construction of new properties, and upgrading existing properties.
The value of Azrieli Group's properties grew by NIS 533 million, net of tax, in 2016, compared with a NIS 132 million increase in 2015.
Azrieli Group will distribute a NIS 480 million dividend from its 2016 profits, 20% more than the dividend it distributed for 2015. As of December 31, 2016, the group's equity totaled NIS 15.3 billion.
Azrieli Group CEO Yuval Bronstein said in response to the results, "The 2016 results for the group's activity over the past year show strong and consistent growth in FFO and NOI. We invested NIS 2.5 billion during the year, mainly in the development of new properties.
"The opening of the Azrieli Rishonim center a week ago and the exceptional occupancy rates in the Azrieli Sarona Tower are a reflection of the group's leading position, innovation, and capabilities. The beginning of work on the Azrieli Town project and the "Yedioth Ahronoth" site is a direct continuation of actions taken to strengthen the growth engines and the group's leading position in the Israeli real estate sector. The group's activity last year was intensive, with a substantial entry into protected housing and the launching of the Azrieli.com digital platform."
Published by Globes [online], Israel Business News - www.globes-online.com - on March 22, 2017
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