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Azrieli Group's Q3 FFO rises 3% YOY

Azrieli Group reported a 3% year-over-year incline in funds from operations from real estate activity to 251 million Israeli shekels in the quarter ended Sept. 30, versus 244 million shekels registered in the comparable term in 2016.

The company said the result reflects the current investment phase for its senior housing operation, and added that the corresponding results in 2016 included a one-time 16 million shekels of revenue for apartments.

FFO attributed to the real estate activities excluding senior housing grew 14% to 246 million shekels, compared with the 215 million shekels in the same quarter in 2016.

During the period, the company's net profit totaled 263 million shekels and net operating income amounted to 349 million shekels. The respective figures marked a fall from 279 million shekels and a climb of 6% from 328 million shekels recorded in the year-ago period.

Azrieli's net asset value, as measured by the European Public Real Estate Association, increased to 156 shekels per share, compared to 145 shekels per share on Sept. 30, 2016.

During the quarter, the company's investment into the property sector reached 178 million shekels which covered investments in developments, new property construction as well as improvement of existing assets.

The company said it is in talks to buy a roughly 19,000 square-meter land plot in Petach Tikva, Israel, for 91 million shekels. Azrieli plans to build an office and retail project on the lot, which has building rights for roughly 53,000 square meters with parking basements.

The company also disclosed that it has secured approval from the Tel Aviv District Planning and Building Committee to build the fourth tower in its Azrieli Tel Aviv project. The project will be extended to about 150,000 square meters from about 69,000 square meters, with spaces for offices, retail, hotel space, residences and senior housing.

As of Nov. 21, US$1 was equivalent to 3.52 Israeli shekels.