Ofer Nimrodi 2 (photo by Rami Zerniger)
The settlement’s training ended 2021 with good results that reflect the good condition of the real estate market. At the same time, the company will conduct real estate worth NIS 602 million. It should be noted that the training of the settlement is involved in a number of significant projects that will yield upstream income and profits not bad at all.
Let’s start with the numbers: Revenues in 2021 increased by about 35% to about NIS 478 million. The net profit in 2021 increased to about NIS 460 million (about NIS 222 million attributed to shareholders), compared with a net profit of about NIS 116 million (about NIS 24 million to shareholders) in a previous year.
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The increase in the value of real estate for investment in 2021 amounted to NIS 602 million, of which NIS 149 million in respect of properties in Israel and NIS 452 million in respect of properties abroad.
The NOI continued to grow and amounted to NIS 196 million in 2021, compared with NIS 175 million the previous year. The total cash and the value of cash and short-term investments in the consolidated balance sheet amounted to NIS 557 million. The company has unutilized credit facilities in Israel in the amount of NIS 220 million, as well as unencumbered real estate assets in Israel in the amount of NIS 357 million, and holdings in tradable shares without any debt in the amount of NIS 1 billion.
Shareholders’ equity amounted to NIS 2 billion in 2021 (of which NIS 1.2 billion is attributed to shareholders). Upon publication of the financial statements, the Company’s Board of Directors approved the distribution of a dividend of NIS 46 million, to be paid in April 2022.
The company raised capital in a private placement during 2021 in the amount of approximately NIS 100 million; The subsidiaries “Hachshara Renewal” and MLP raised capital during the year in the amount of NIS 29 million and NIS 105 million, respectively. The company raised NIS 422 million in 2021 through the expansion of 22 and 23 bond series. 2022
As stated, the company is involved in a number of significant projects and it reports (with great and impressive transparency) on their status and legal / planning / performance status. “Migdal Yaakov Nimrodi” (Beit Maariv) – under construction (estimated completion in 2026); A hearing on the issue of the number of floors over 42 that have already been approved, took place in November 2021 in the Supreme Court and is awaiting a ruling.
“Yishuv Training Tower” (Beit Kalka), Tel Aviv – In February 2022, a master plan for a 60-story tower with a total area of approximately 75,000 square meters in a mix of uses was approved for deposit. “Pro Medical Tower” – In December 2021, an agreement was signed with a tenant to operate a continuous rehabilitation hospital (MARG) on 6 floors (option to increase to 9) out of 20; construction is expected to begin in the middle of 2, 2022; Additional, mainly from the field of medicine, to the rest of the territories.
“The Seven Star Tower BBC” – Towards the end of construction in the 3rd quarter, 2022; In negotiations with a number of potential tenants. “The Seven Stars Eilat” – under construction (estimated completion in 2023); start of rentals.
The company is also involved in the field of residential development, urban renewal in Israel with about 26,000 potential housing units, of which about 3,500 housing units with an approved master plan and another about 3,500 housing units after a deposit for discussion; Of this, approximately 7,850 housing units in projects in advanced stages, including an expected gross profit (part of the company) of approximately NIS 1.3 billion
Fichman, Holon (235 units, evacuation-construction) – under construction; 78 units were sold (59% of stock); Gross profit forecast (part of the company) that has not yet been recognized as NIS 62 million. Lessin, Tel Aviv (17 housing units, TMA 38/2) – in execution; 9 units were sold (100% of the stock). De Haz, Tel Aviv (43 units, TMA 38/2) – 20 units were sold (100% of the stock); Start of construction in the coming months.
Henkin, Holon (130 housing units, evacuation-construction) – master plan approved; Expect construction to begin in 2022. Kol-Bo, Jerusalem (101 housing units, initiated) – work on a building permit; expected start of construction in 2022. Permanent paint housing, Kiryat Yam (1,450 housing units, evacuation-construction) – master plan approved; expected start Establishment in 2023
Ben-Gurion Complex, Ramla (3,082 housing units, evacuation-construction-condensation) – Hotamal approved the master plan for deposit; construction is expected to begin in 2023.
Bar-Lev, Tel Aviv (102 housing units, evacuation-construction) – master plan with local authority approved for deposit for objections; Expect construction to begin in 2023. The pilots’ compound, Ness Ziona (387 housing units, evacuation-construction) – the project was approved by the city plenum for discussion in the district committee. The second aliyah, Haifa (720 housing units, evacuation-construction) – approved master plan; Already stands at about 76%.
In February 2022, a strategic cooperation agreement was signed with Menora-Mivtachim for investing in equity Co-Invest directly in 4 urban renewal projects.
The market value of “Hachshara Renewal” shares held by Hachshara Yishuv is NIS 457 million higher than their value in the books.
Ofer Nimrodi, CEO of Yishuv Training: “Yishuv training has grown significantly in recent years, thanks to the successful completion of significant business and financial moves in accordance with the strategy, which are reflected in the financial results, with an increase in all parameters.
“We successfully promote business development plans, in Israel and abroad, are in a peak period in terms of the scope of project execution, and are doing all this while significantly strengthening the company’s capital, financial strength, and liquidity. All of our business activities, both in the field of income-producing properties in Israel, the logistics parks in Europe, urban renewal in Israel and residential development in Poland, are in a strong positive trend of growth, and are expected to remain as supported by macro trends.
“As a company with a very long history, the settlement prepares real estate properties and land for future development in Israel, which will allow the company to continue significant growth in the coming years on the basis of these properties.
“In accordance with the strategy, we will double the NOI in Israel, and double the value of logistics activities in Europe over the next 4 years and continue to strengthen our position as a leading player in the field of urban renewal in Israel.”