Azrieli Group (AZRG) Q1 2022 earnings summary

Executive summary

• Q1 NOI was NIS 456m, up 51% YoY; FFO reached NIS 337m, up 48% YoY, with growth across operating segments.

• Net profit attributable to shareholders was NIS 336m; comprehensive income was NIS 484m, both higher than a year earlier.

Financial highlights

• Same-property NOI increased 44% YoY; FFO excluding senior housing was NIS 310m versus NIS 206m in Q1 2021, up ~50%.

• Net profit rose from NIS 110m in Q1 2021; comprehensive income rose from NIS 289m.

• Investment-property appreciation of NIS 252m, mainly reflecting CPI increases, supported results; higher interest expenses, also due to CPI, partly offset profit growth.

Outlook and guidance

• SolarEdge campus construction began; completion is expected in ~3 years, adding to the property portfolio.

• Data centers are expected to grow significantly as projects under development are completed; senior housing is expected to expand considerably in coming years.

• Hospitality and long-term rental housing are being advanced as new operating segments, alongside exploration of opportunities aligned with the growth strategy.