company Melisron , under the control of Liora Ofer and the management of Ofir Sharid, registers an improvement in the operational parameters in 2022 – according to its annual reports. The NOI (profit from rental activity) increased by about 18% to about NIS 1.22 billion. The annual FFO (net flow profit) increased by about 23% to about NIS 887 million. On the other hand, the net profit for the shareholders recorded a decrease and amounted to approximately NIS 1.4 billion, compared to approximately NIS 1.47 billion in 2021.
Redemptions increased in 2022 by about 9% compared to 2021, and by about 5% compared to 2019 before the corona virus. The positive trend continues even into the year 2023, with an increase of about 13% in actual redemptions of the company’s malls in January (compared to 2022) and a 9% increase in redemptions in February.
The increase in redemptions and the number of visitors to shopping malls in 2022 also translated into an average increase of about 8% in real rents for new contracts and exercise of options, this following an average increase of about 5% in 2021.
“During the Corona period, we were sure that there would be a shift to the internet,” Ofir Sherid, CEO of Melisron, tells Globes. “But not only is it not happening, the situation is the opposite. The online fashion sector is probably declining significantly, and the malls are booming. In the field of clothing and footwear, for example, the index decreased by 4.5%, while we increased by 8% – so there is actually an increase of more than 12% realistically.”
Sherid explains that another factor is the sky that has opened, but the costs are apparently bringing shoppers back to the malls. “In 2019, the costs of flying and transporting luggage were cheap. This has changed, a plane ticket is very expensive, transporting luggage is expensive, and shopping abroad is also not as cheap as it was in the past, when the index rose more in the world than in Israel.
“In addition, the mix of stores in the malls is very correct. We are renovating and refreshing, more footfalls are coming to the mall, and then in the future I will be able to charge more rent. In Ramat Aviv, I am renovating the entire mall, and rebuilding everything with a mix of stores like Hello Yoga and Lulu Lemon, and that way I will reach a lot Stronger for 2023-2024.”