Azrieli Group (AZRG) Q3 2022 earnings summary

Executive summary

• Q3 NOI rose 20% YoY to NIS 513m; same-property NOI increased 9% YoY. Based on Q3 figures, annual NOI exceeds NIS 2bn for the first time, excluding signed Data Center contracts not yet producing income.

• Net profit attributable to shareholders rose 76% YoY to NIS 330m.

Financial highlights

• FFO excluding senior housing was NIS 321m, up 2% YoY; total FFO was NIS 330m versus NIS 357m in Q3 2021.

• Comprehensive income was NIS 208m versus NIS 273m YoY; Q3 profit included NIS 174m of investment property appreciation, mainly from the index rise.

Outlook and guidance

• Annual NOI based on Q3 figures exceeds NIS 2bn for the first time, excluding signed Data Center contracts not yet producing income.

• Signed Data Center contracts are expected to contribute once projects under development are completed; development was described as a key growth engine for coming years.