Azrieli Group (AZRG) Q3 2024 earnings summary

Executive summary

• Q3 2024 NOI rose ~10% year over year to NIS 586M; total FFO increased ~12% to a record NIS 445M.

• Net profit attributable to shareholders reached NIS 383M, up from NIS 352M; comprehensive income fell to NIS 523M from NIS 575M.

• Low leverage and strong liquidity: net debt to assets of 38%, NIS 2.5B in cash, and NIS 35.1B in unencumbered assets.

• Nine development projects total 645,000 sqm, spanning retail, offices, senior housing, and data centers.

Financial highlights

• Q3 revenue was NIS 839M, up from NIS 779M; NOI was NIS 586M, up from NIS 535M.

• Same-property NOI rose ~7% to NIS 573M from NIS 535M; FFO excluding senior housing increased ~9% to NIS 400M from NIS 367M.

• Total FFO from income-producing real estate was NIS 445M, up from NIS 398M; basic EPS was NIS 3.16, up from NIS 2.90.

• Nine-month net income was NIS 1,003M, down from NIS 1,148M, mainly due to lower fair-value adjustments and higher financing costs.

• Total assets were NIS 55.4B and equity attributable to shareholders was NIS 23.8B at 30 September 2024.

Outlook and guidance

• Data-center contracts are expected to add to results as customer handovers continue; current results include only part of their contribution.

• Development pipeline, particularly data centers and mixed-use projects, is expected to support growth; major data-center contracts and financing remain under negotiation.

• Management cited financial strength, low leverage, and flexibility to pursue opportunities amid macroeconomic and geopolitical uncertainty.