Azrieli Group (AZRG) Q4 & CMD 2024 earnings summary

Executive summary

• Record 2024 NOI reached NIS 2,302m, up 9% YoY, and FFO including senior housing was NIS 1,709m, up 15%.

• Growth was driven by malls, offices, senior housing and data centers; occupancy remained high across core segments.

• Declared a NIS 800m dividend, or NIS 6.60 per share, for May 2025.

Financial highlights

• Q4 NOI was NIS 630m, up 28% YoY, or 19% excluding prior-year war relief; FY NOI rose 9%, or 7% excluding relief.

• FY FFO was NIS 1,709m including senior housing and NIS 1,590m excluding senior housing, both up 15%; Q4 FFO was NIS 431m and NIS 407m, respectively.

• Net profit was NIS 1,477m versus NIS 2,225m in 2023; the decline reflected the prior-year Compass sale gain, higher financing and G&A costs, partly offset by NOI growth and lower tax expense.

• Revenues from rent, management and sales totaled NIS 3,281m, up from NIS 2,943m in 2023.

Outlook and guidance

• Mall growth in 2025 is expected to return to standard average levels, below 2024’s unusually strong growth; office deal flow is improving, though negotiations remain longer.

• The short- and medium-term pipeline includes Spiral Tower, SolarEdge Campus and senior housing, with estimated construction costs of NIS 5.9–6.2bn; full occupancy could lift annualized NOI to NIS 2,933m and FFO to NIS 2,075m.

• ~7 MW of data-center capacity is under construction for completion in 2025; the Rishon LeZion senior home is expected to open in Q4 2025.

• Development continues selectively amid war, uncertainty and high interest rates, with European data-center focus on London, Germany and Norway.