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Mivne Real Estate (K.D.) Ltd.
Investor Presentation • Aug 18, 2022
6930_rns_2022-08-18_f93595a7-b41f-47d8-a12b-7ecbd5c3c4b7.pdf
Investor Presentation
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Capital Market Presentation June 30 2022
About Mivne
Israel's leading real estate company in development, purchasing, construction and management of structures intended for offices, industry, logistics, commerce, and residential purposes, for rent or sale.
About Mivne
The Company has a dividend distribution policy for 2022 totaling 240 million NIS but not exceeding 50% of the Company's total yearly FFO, reflecting a yearly dividend yield of 3%.
1.6 million m2 Cash-Generating Properties in Israel 12.7 billion NIS Value of investment property 564 Number of cashgenerating properties in Israel 93.8% Occupancy in Israel
2,882
1,790
Tenants in Israel
Housing units in advanced construction and planning stages
741,000 m²
Land reserves and unused rights
1.1 billion NIS
Value of investment property under development
Data as of June 30 2022
About Mivne
Our Customers Include
Cash-generating properties in Israel as of June 30 2022
Including data of associates (expanded consolidated)
FFO from Cash-Generating Properties (in Millions of NIS)
FFO per Share (In Millions of NIS)
NOI in Israel (in Millions of NIS)
Over the course of the period (1-6/2022) the NOI in Israel amounted to 350 million NIS
Mivne Group | Capital Market Presentation June 30 2022 8
Same Property NOI in Israel (in Millions of NIS)
NOI in Israel (in Millions of NIS)
Analysis of Growth in NOI and in SP NOI in Israel
| NOI in Israel | NOI SP in Israel | |
|---|---|---|
| 1-6/2021 | 310 | 309 |
| Increase in CPI | 10 | 10 |
| Properties purchased | 12 | - |
| Impact of COVID-19 | 11 | 11 |
| Monthly rentals, increase in rental fees in contract renewals and decrease management costs, net |
7 | 7 |
| 1-6/2022 | 350 | 337 |
Expected addition due to sampled rental fees to NOI signed/renewed and not yet reflected in reports
| Contract | Expected Addition in Yearly Terms |
|---|---|
| Jerusalem | 3.7 million NIS |
| Holon – commercial |
3 million NIS |
| Holon – offices |
1.3 million NIS |
| Tel Aviv | 1.9 million NIS |
| Beit She'an | 2 million NIS |
| Yerucham | 7.4 million NIS |
| Sderot | 1.9 million NIS |
| Total Expected Addition | 21.2 million NIS |
EPRA NAV (In Millions of NIS)
| 1 | |
|---|---|
| � � | |
| June 30 2022 |
December 31 2021 |
|
|---|---|---|
| Special equity | 7,500 | 6,902 |
| Plus tax reserve for land | 2,162 | 1,971 |
| EPRA NAV | 9,662 | 8,873 |
| Number of shares (thousands of shares) |
754,840 | 750,953 |
| PRA NAV per share (NIS) | 12.8 | 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
| 1 | ||
|---|---|---|
| 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 | 634 | 635 | 109-117 | |
| Mivne Compound | Holon | Offices | 14,800 | Q3/2022 | 125 | 4 | 8-10 | |
| Sarona | Kfar Saba | Offices | 26,000 | 2024 | 132 | 109 | 22-24 | |
| Life Sciences Park* |
Haifa | Offices | 14,000 | Q2/2024 | 19 | 137 | 12 | |
| Kiryat Hamishpat | Kiryat Gat | Offices | 5,000 | Q4/2022 | 38 | 1 | 3 | |
| "Mivne" Tower | Herzliya Pituach |
Offices | 24,300 | Q1/2026 | 120 | 216 | 27-30 | Construction of mixed-use |
| Ha'elef Compound* |
Rishon Lezion | Rental housing and student dormitories |
17,000 | Finished 2026 | 71 | Pre-estimate | - | buildings |
| 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 | 235 | Pre-estimate | - | Construction of innovative logistical centers |
| Life Sciences Park* |
Haifa | Offices | 14,000 | Pre-estimate | 11 | Pre-estimate | - | |
| Crytek 2 | Yokneam | Offices | 25,000 | Pre-estimate | 5 | Pre-estimate | - | Future betterment potential: "from inventory to |
| Beersheba | Beersheba | Hotels | 7,000 | Finished 2025 | 7 | Pre-estimate | - | cash-generating" The Company owns a |
| Akerstein Towers** | Herzliya | Offices | 50,000 | Pre-estimate | - | Pre-estimate | - | significant "bank" of |
| Giv'at Sha'ul | Giv'at Sha'ul | Offices | 34,750 | Pre-estimate | 47 | Pre-estimate | - | undeveloped land and construction rights |
| Be'er Tuvia* | Be'er Tuvia | Logistics | 15,000 | Pre-estimate | 38 | Pre-estimate | - |
Betterment at its best Hameitav Project – Stage B
In April 2022, the project plan was approved for deposit at the Local Committee. The plan, as approved, 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 m² (constituting some 400 housing units)
-
- Construction rights for commerce and employment: 125,000 m².
Rental Housing (in Millions of NIS)
Value in Company books as of June 30 2022 plus balance payable as of June 30 2022*
* The estimated market value as of June 30 2022 was calculated on the basis of sales data for similar apartments in identical areas.
| Town | Usage | Number of Units |
Area (m²) | Book Value/Su m Paid (Millions of NIS) |
Balance Payable (Millions of NIS) |
NOI/Expe cted 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 | 125 | 5.5 | Q3/2023 |
| Ben Shemen |
Residential | 80 | 8,913 | 26 | 110 | 4.2 | Q3/2024 |
| Hadera | Residential | 50 | 4,507 | 14 | 60 | 1.7 | Q4/2024 |
| Ramat Chen |
Residential | 80 | 7,177 | 37 | 156 | 5.3 | Q4/2026 |
| Total | 720 | 45,018 | 345 | 451 | 28.9 |
* Not including housing units the Company intends to rent in the HaHaskala Blvd. Project, Herzliya, and Merom Hasharon
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.
| Number of | Size (KW) | Expected Yearly Revenue (Thousands of NIS) |
|
|---|---|---|---|
| Existing installations | 128 | 17,751 | 15,560 |
| Increasing the size of existing installations |
- | 4,383 | 2,674 |
| Installations with quota* | 150 | 20,248 | 14,222 |
| Installations in approval proceedings |
15 | 1,709 | 1,308 |
| Total | 293 | 44,091 | 33,764** |
* Of which 70 facilities are connected and awaiting final approval by the Electric Company
** The Company's share of revenues is expected to amount to a total of 26 million NIS.
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, 80 housing units sold so far |
371 | +75% | 261 |
| Marom Hasharon, Residential Buildings |
213 | Underway, 29 housing units sold so far |
85 | +90% | 131 |
| Mivne Tower Herzliya Pituach |
103 | Underway, marketing not yet begun |
120 | 100% | In planning, zoned for rental housing |
| Hameitav Stage B Tel Aviv |
400 | In Town Construction Plan approval stages. |
200 | 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 |
235 | +33% | Pre-estimate |
| Total | 1,790 | 1,050 |
1,790
housing units in advanced construction and planning stages
676 housing units under construction
Establishing a Joint Venture – "DIGITAL REALTY MIVNE"
- On June 13, 2022, Digital Realty (NYSE: DLR) and Mivne Real Estate (k.d) ltd (TLV: MVNE) announced the establishment of the Joint Venture "DIGITAL REALTY MIVNE", designated to develop and operate the largest colocation data center campus in Israel.
- Digital Realty being the largest global provider of cloud and carrier-neutral data center, colocation and interconnection solutions combined with Mivne's large and strategic land bank and its extensive geographical distribution across Israel, will able the JV to develop strategically located, purpose-built data centers
Partnering to Develop The Largest Colocation Data Center In Israel
- Long term holding of assets
- Site investor & developer
- Established owner & operator
Properties in development
Investment Property Abroad
| Country | Number of Properties |
Above-Ground Area in m² |
Occupancy rate | Fair value (thousands of NIS) |
NOI from Cash Generating Properties 1-6.2022 (Thousands of NIS) |
|---|---|---|---|---|---|
| Cash-Generating Properties | |||||
| Switzerland | 2 | 56,650 | +93.9% | 387,348 | 11,675 |
| Ukraine | 1 | 44,672 | +96% | 255,500 | 7,603 |
| North America | 4 | 77,544 | +72% | 235,436 | 2,880 |
| France | 5 | 119,447 | +98.5% | 18,299 | 2,416 |
| Total cash-generating properties |
12 | 298,313 | +90.4% | 896,583 | 24,574 |
| Land | |||||
| France | 1 | 23,509 | |||
| Total | 13 | 298,313 | +90.4% | 920,092 | 24,574 |
Financial data as of June 30 2022
Mivne Group | Capital Market Presentation 2022 22
Financial fortitude
Expected Principal Redemptions Rate (in Millions of NIS)
Financial fortitude
Cost of Debt – Average Israeli Debt Interest
Balance Sheet Data (In Millions of NIS)
| June 30 2022 |
December 31 2021 |
|
|---|---|---|
| Cash and cash equivalents | 570 | 923 |
| Cash-generating investment property and property under development |
13,785 | 12,063 |
| Investments in associates | 388 | 367 |
| Financial liabilities, including debentures |
6,643 | 6,108 |
| Deferred taxes, net | 1,677 | 1,459 |
| Total equity attributed to shareholders | 7,500 | 6,902 |
Primary Data from Statement of Operations (in Millions of NIS)
| 1-6.2022 | 1-6.2021 | |
|---|---|---|
| Rental and management fee income | 467 | 436 |
| Total revenues | 488 | 603 |
| Gross profit | 368 | 364 |
| Revaluation of investment property and real estate under development |
793 | 269 |
| Operating profit | 1,121 | 612 |
| Financing expenses, net | (226) | (134) |
| Net profit | 685 | 393 |
Mivne Group | Capital Market Presentation June 30 2022 26
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, 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.
