Blue Square Real Estate records in January-September 2021. Increase in all operational parameters:
The FFO jumped by about 29.4% to a total of about NIS 135 million.
The NOI grew by 4.4% and amounted to a total of approximately NIS 234.2 million.
Rental income increased by 4.3% to NIS 262.4 million.
The net increase in the value of investment real estate is approximately NIS 351.4 million.
In light of the company’s streamlining of all operational parameters and the improvement of its financial profile, Blue Square Real Estate has risen to ‘AA’ with a stable forecast (degrees).
Blue Square Real Estate In the first nine months of 2021, it achieved a net profit attributable to owners of NIS 405.2 million – 3.7 times compared with the corresponding period last year. Net profit in the third quarter amounted to NIS 33 million. The company, which is controlled Moti Ben Moshe (60.26%), which focuses on the field of income-producing real estate, with a diverse mix of uses – commerce, advanced logistics complexes and office buildings, and is traded on the Tel Aviv 90 and Tel Aviv 125 indices, registers an increase in all operational parameters.
In recent days, the company reported that a full building permit was obtained for the project led by the company in Tel Aviv, which is a mixed-use project that includes 390 housing units (of which 60 housing units are within reach) – a “& East” project in which the company participates 50%, as well as employment and commercial areas. In the amount of about 30,000 square meters (100% owned by the company), in two towers that will be built on Tozeret Ha’aretz Street in Tel Aviv.
Moti Ben Moshe, Owner of the Blue Square Oak Group and Chairman of Blue Square Real Estate, noted that “the results of the last nine months in general and the results of the third quarter in particular, express an improvement in all operational parameters – not as a one-time event but as a consistent improvement trend.
We will continue to perform at the operational and financial levels, as evidenced by the significant increase in FFO resulting from a broad move we have made to repay the debt. The sectoral and geographical distribution of the company’s assets gives us stability and allows us significant financial flexibility. We continue to act with the determination and due care required for the continued development of the company and the improvement of the assets alongside the Corona. “
Michael (Mickey) Zisman, Who manages Square Real Estate, noted that the company continues to become more efficient in all operational parameters and, at the same time, improves its financial profile – steps that have recently been reflected, including raising the company’s rating by Maalot to ‘AA-‘ with a stable outlook. “We are prepared to continue to develop the company and are constantly considering entering additional projects, expanding solar activity on our existing properties, acquiring new commercial complexes, initiating and improving existing complexes, including the establishment of a new arm in the field of urban renewal.”
The reports published by Blue Square Real Estate also show, among other things, that:
Rental income in the first nine months of 2021 amounted to an extended consolidated amount of NIS 262.4 million, compared with NIS 251.6 million in the corresponding period last year, an increase of 4.3%.
In the third quarter of 2021, rental income amounted to NIS 90.2 million, compared with NIS 88.2 million in the corresponding quarter in 2020, an increase of 2.3%.
Blue NOI’s NOI in the first nine months of 2021 amounted to NIS 234.2 million – an increase of 4.4% compared to the first nine months of 2020, when the NOI amounted to NIS 224.3 million. H. In the third quarter, the NOI amounted to approximately NIS 80 million, an increase of approximately 2.9% compared with the corresponding period last year.
The FFO for the period, grew by about 29.4% and amounted to a total of about NIS 134.9 million, compared with a total of about NIS 104.3 million in the corresponding period last year. In the third quarter, FFO grew by approximately 15% and amounted to approximately NIS 45.4 million, compared with NIS 39.4 million in the corresponding quarter in 2020.
A net increase in the value of investment real estate in the first nine months of 2021, which amounted to an extended consolidated report to the amount of NIS 351.4 million, as a result of the revaluation of the Company’s assets and a reduction in capitalization rates on most of the Company’s assets.
The income-producing real estate of Blue Square Real Estate, as of the date of the report, amounts to approximately NIS 5.6 billion.
The company’s CAP RATE stands at about 6.4% and the weighted debt cost stands at a total of 1.64%. And non-mortgaged real estate and real estate assets in the amount of NIS 3.3 billion, which reflects a high level of financial flexibility for the company.
The equity attributed to the owners of the company as of September 30, 2021 amounted to approximately NIS 2.6 billion and constitutes approximately 31% of the total balance sheet.
The EPRA NRV amounted to NIS 3.3 billion as of the date of the report.
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