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Mivne Real Estate (K.D.) Ltd.
Investor Presentation • Nov 24, 2022
6930_rns_2022-11-24_f582ffa3-6945-427f-9d45-1bf74b317694.pdf
Investor Presentation
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Capital Market Presentation September 30 2022
About Mivne
Israel's leading real estate company in the development, purchasing, construction and management of structures intended for offices, industry, logistics, commerce, and residential purposes, for rent or sale.
Mivne
Data as of September 30 2022
Cash-generating properties in Israel as of September 30 2022
Including data of associates (expanded consolidated)
FFO from Cash-Generating Properties (in Millions of NIS)
FFO by quarterly cross-section
The Company has revised its FFO forecast for 2022 to 525-540 million NIS From 500-520 million NIS as of the publication date of the June 30 2022 Statements
FFO per Share (In Millions of NIS)
NOI in Israel (in Millions of NIS)
Quarterly NOI in Israel
Over the course of the period (1-9/2022) the NOI in Israel amounted to 538 million NIS
The Company has revised its NOI forecast for 2022 to 750-765 million NIS From 730-750 million NIS as of the publication date of the June 30 2022 Statements
Same Property NOI in Israel (in Millions of NIS)
Same Property NOI
Same Property NOI
NOI in Israel (in Millions of NIS)
Analysis of growth in the period in NOI and in SP NOI in Israel
| NOI in Israel | NOI SP in Israel | |
|---|---|---|
| 1-9/2021 | 471 | 469 |
| Increase in CPI | 17 | 17 |
| Assets purchased and sold, net | 18 | - |
| Impact of COVID-19 | 12 | 12 |
| Monthly rentals, increase in rental fees in contract renewals and decrease management costs, net |
20 | 20 |
| 1-9/2022 | 538 | 518 |
Analysis of growth in the quarter in NOI and in SP NOI in Israel
| NOI in Israel | NOI SP in Israel | |
|---|---|---|
| 7-9/2021 | 161 | 161 |
| Increase in CPI | 8 | 8 |
| Properties purchased | 7 | - |
| Monthly rentals, increase in rental fees in contract renewals and decrease management costs, net |
12 | 12 |
| 7-9/2022 | 188 | 181 |
Mivne
EPRA NAV (In Millions of NIS)
| September 30 2022 |
December 31 2021 | |
|---|---|---|
| Attributed equity | 7,740 | 6,902 |
| Plus tax reserve for land | 2,226 | 1,971 |
| EPRA NAV | 9,966 | 8,873 |
| Number of shares (thousands of shares) | 754,840 | 750,953 |
| PRA NAV per share (NIS) | 13.2 | 11.8 |
The expected growth in NOI from projects under development, solar projects and assets not yet activated (in millions of NIS)
Industrial, logistics and employment development
| Project Name | Location | Usage | Built-Up Area (In m²) |
Estimated Completion Date |
Project's Value in the Company's Books (in Millions of NIS) |
Estimated Cost Balance (in Millions of NIS) |
Expected NOI Range (in Millions of NIS) |
|---|---|---|---|---|---|---|---|
| Hasolelim | Tel Aviv | Offices and commercial | 68,300 | Q1/2026 | 647 | 620 | 109-117 |
| Mivne Compound | Holon | Offices | 14,800 | Q4/2022 | 129 | - | 8-10 |
| Sarona | Kfar Saba | Offices | 26,000 | 2024 | 169 | 88 | 22-24 |
| Life Sciences Park* | Haifa | Offices | 14,000 | Q2/2024 | 35 | 122 | 12 |
| Kiryat Hamishpat | Kiryat Gat | Offices | 5,000 | Q4/2022 | 38 | 1 | 3 |
| "Mivne" Tower | Herzliya Pituach | Offices | 24,300 | Q1/2026 | 121 | 215 | 27-30 |
| Ha'elef Compound* | Rishon Lezion | Rental housing and student dormitories |
17,000 | Finished 2026 | 71 | Pre-estimate | - |
| Hasivim, Neveh Oz | Petach Tikva | Offices | 13,000 | Pre-estimate | 24 | Pre-estimate | - |
| Hameitav Stage B | Tel Aviv | Employment and commercial | 125,000 | Pre-estimate | 435 | Pre-estimate | - |
| Life Sciences Park* | Haifa | Offices | 14,000 | Pre-estimate | 11 | Pre-estimate | - |
| Crytek 2 | Yokneam | Offices | 25,000 | Pre-estimate | 5 | Pre-estimate | - |
| Beersheba | Beersheba | Hotels | 7,000 | Finished 2025 | 7 | Pre-estimate | - |
| Akerstein Towers** | Herzliya | Offices | 50,000 | Pre-estimate | - | Pre-estimate | - |
| Giv'at Sha'ul | Giv'at Sha'ul | Offices | 34,750 | Pre-estimate | 47 | Pre-estimate | - |
| Be'er Tuvia* | Be'er Tuvia | Logistics | 15,600 | Pre-estimate | 59 | Pre-estimate | - |
| Hadera | Hadera | Offices | 1,250 | Pre-estimate | 30 | Pre-estimate | - |
| DLR Mivne * | Petach Tikva | Data center The Company's Share – 50% *The Company's share – 53% |
22MW on some 15,000 m² |
Pre-estimate | - | Pre-estimate | - |
Construction of mixed-use buildings
Construction of innovative logistical centers
Future betterment potential: "from inventory to cash-generating" The Company owns a significant "bank" of undeveloped land and construction rights
Betterment at its best Hameitav Project – Stage B
In October 2022 the Company met the conditions for depositing a plan and the plan was published as approved by the Local Committee. The plan includes the construction of three buildings: a 47-story residential building and two employment buildings with 47 stories each. Regarding the additional employment structure at the "Hamashbir Hamerkazi" building, the plan defined it as a building for conservation.
The plan area consists of 1.3 hectares, using the following rights:
-
- Residential construction rights: some 41,600 m ² (constituting some 400 housing units )
-
- Construction rights for commerce and employment: 125,000 m ².
Rental Housing (in Millions of NIS)
Value in Company books as of September 30 2022 plus balance payable
Mivne
Estimated market value as of September 30 2022*
* The estimated market value as of September 30 2022 was calculated on the basis of sales data for similar
| Town | Usage | Number of Units |
Area (m²) |
Book Value/ Sum Paid (Millions of NIS) |
Balance Payable (Millions of NIS) |
NOI/ Expected NOI (Millions of NIS) |
Expected Yield |
|---|---|---|---|---|---|---|---|
| Jerusalem | Housing Collection |
317 | 12,353 | 119 | - | 7.3 | Cash generating |
| Kiryat Ono | Student Dorms |
113 | 3,334 | 59 | - | 3.1 | Cash generating |
| Kiryat Ono | Residential | 30 | 2,690 | 66 | - | 1.8 | Cash generating |
| Ramat HaSharon |
Residential | 50 | 6,044 | 24 | 126 | 5.5 | Q3/2023 |
| Ben Shemen | Residential | 80 | 8,913 | 26 | 111 | 4.2 | Q3/2024 |
| Hadera | Residential | 50 | 4,507 | 14 | 61 | 1.7 | Q4/2024 |
| Ramat Chen | Residential | 80 | 7,177 | 37 | 158 | 5.3 | Q4/2026 |
| Total | 720 | 45,018 | 345 | 456 | 28.9 |
apartments in identical areas. * Not including housing units the Company intends to rent in the Solelim Project, Herzliya, and Merom Hasharon
Residential real estate development
| Project/ Location | Planned Housing Units |
Status | Cost in Company's Books |
Company's Share |
Projected Development Profits (in Millions of NIS) |
|---|---|---|---|---|---|
| Hasolelim Tel Aviv |
360 | Underway, 860 housing units sold so far |
387 | 75% | 320 |
| Marom Hasharon, Residential Buildings |
213 | Underway, 32 housing units sold so far |
110 | 90% | 127 |
| Mivne Tower Herzliya Pituach |
103 | Underway, marketing not yet begun |
121 | 100% | In planning, zoned for rental housing |
| Hameitav Stage B Tel Aviv |
400 | In Town Construction Plan approval stages. |
- | 100% | Pre-estimate |
| Or Akiva and Hadera | 334 | In Town Construction Plan approval stages. |
39 | 100% | Pre-estimate |
| Akerstein Stage B | 150 | A Town Construction Plan was submitted under the authority of the regional committee |
- | 53% | Pre-estimate |
| Sdeh Dov | 230 | Valid town plan, in planning stages |
236 | 33% | Pre-estimate |
| Total | 1,790 | 893 |
1,790
housing units in advanced construction and planning stages
676
housing units under construction
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Cooperation for designing and building Israel's largest data
Solar energy
Within the framework of its activity in the field of solar energy, the Company filed requests to arrange 293 solar energy systems on the rooftops of buildings in its possession. To date, a plan has been arranged to install 278 systems, of which 128 systems have been activated.
The total expected yearly revenues upon completing installation of all the systems is estimated at 34 million NIS (the Company's share being 26 million NIS).
The Company has a significant advantage in activity in this area in light of the Company's extensive rooftop areas.
| Amount Size (KW) |
Revenue (Thousands of NIS) |
|---|---|
| Existing installations 148 20,380 |
17,560 |
| Increasing the size of existing installations - 4,383 |
2,674 |
| Installations with quota* 130 18,030 |
12,535 |
| Installations in approval proceedings 15 1,327 |
1,015 |
| Total 293 44,120 |
33,784 |
* Of which 68 facilities are connected and awaiting final approval by the Electric Company
Properties in development
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| Country | Number of Properties | Above-Ground Area in m² |
Occupancy rate | Fair value (thousands of NIS) |
NOI from Cash Generating Properties 1-9.2022 (Thousands of NIS) |
|---|---|---|---|---|---|
| Cash-generating properties | |||||
| Switzerland | 2 | 57,042 | 93.4% | 384,048 | 17,670 |
| Ukraine | 1 | 44,672 | 85.8% | 259,355 | 10,857 |
| North America * | 4 | 77,544 | 72.4% | 230,801 | 4,994 |
| France | 5 | 119,447 | 98.5% | 17,541 | 3,555 |
| Total cash-generating properties |
12 | 298,705 | 88.9% | 891,745 | 37,076 |
| Land | |||||
| France | 1 | 22,536 | |||
| Total | 13 | 298,705 | 88.9% | 914,281 | 37,076 |
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Financial data
as of September 30
2022
Mivne Group | Capital Market Presentation 2022 21
Financial fortitude
Mivne
Expected Principal Redemptions Rate (in Millions of NIS)
Financial fortitude
Cost of Debt – Average Israeli Debt Interest
Balance Sheet Data (In Millions of NIS)
| September 30 2022 | December 31 2021 | |
|---|---|---|
| Cash and cash equivalents | 375 | 923 |
| Cash-generating investment property and property under development |
14,116 | 12,063 |
| Investments in associates | 582 | 368 |
| Financial liabilities, including debentures |
6,723 | 6,108 |
| Deferred taxes, net | 1,680 | 1,459 |
| Total equity attributed to shareholders |
7,740 | 6,902 |
Primary Data from Statement of Operations (in Millions of NIS)
| 1-9.2022 | 1-9.2021 | |
|---|---|---|
| Rental and management fee income | 717 | 666 |
| Total revenues | 757 | 850 |
| Gross profit | 569 | 552 |
| Revaluation of investment property and real estate under development |
1,028 | 427 |
| Operating profit | 1,539 | 970 |
| Financing expenses, net | (345) | (220) |
| Net profit | 978 | 614 |
Disclaimer
This presentation was prepared by Mivne Real Estate (K.D.) Ltd. and does not constitute a proposal to buy or sell Company securities or a proposal to receive such offers and is intended to provide concise information only. The information presented may not serve as a basis for making investment decisions, recommendations or opinions and does not replace the investor's judgment and appropriate advice.
The contents of this presentation in all matters connected to the analysis of Company activity is a summary only; to receive a full picture of the Company's activity and of the risk factors the Company is dealing with, the Company's shelf prospectus, and its immediate, periodic and quarterly reports, must be studied using the MAGNA distribution site ("Company Reports"). This presentation also includes data and information presented and edited in a manner different than the data included in the Company's reports or such that can be calculated from the data included in the Company's reports. The information presented in this presentation does not replace a review of the Company's reports.
The presentation features forecasts, assessments, estimates and data referring to future events the realization of which is not certain and not under the Company's control. The Company's guidelines and estimates included in this presentation, including in connection with a forecast regarding operational and financial data including short-term and longer-term FFO and NOI forecasts as development and construction of projects (expected timetables, receipt of regulatory approvals, construction costs, development profits, future revenues and a forecast regarding revenues expected from solar energy systems and assets that have not yet been activated): all of these constitute forward-looking information as defined in Section 32a of the Securities Law, 1968, and this information is based solely on the Company's subjective estimates made in good faith, based on past experience and professional knowledge accumulated by the Company, on the basis of facts and data pertaining to the current situation of the Company's business and that of its investees as well as on macroeconomic facts and data collected by the Company from other sources, all as known by the Company as of the time this presentation was prepared.These estimates may not be realized, in whole or in part, or be realized in a manner materially different than projected, among other things, depending on the realization of risk factors characterizing the Company's activity as well as developments in the economic and geopolitical environment (in the world in general and in Israel in particular). Therefore, the results of the Company's activity may be materially different from the general expectations in this presentation.