“I divide office rental prices into two, except Tel Aviv and inside Tel Aviv. Office rental prices outside the borders of Tel Aviv and Gush Dan have hardly changed in recent years and are in the same reasonable price range.
“Inside Tel Aviv and the Gush Dan area, the story is different. We have seen a significant change in the last year and a half before Corona, a change that was mainly due to high demand for offices near the railway arteries, new high-tech companies that flooded demand. The demand for our properties in Tel Aviv is high – the prices of office rentals in Tel Aviv will continue to rise, “says the company’s CEO Dudu Zabida regarding the rising trend in office rental prices in the last two years.
The income-producing real estate company
a building
+0.18%
Base:1,086
opening:1,089
High:1,116
low:1,075
change:27,763,829
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Reported the results of the first quarter of 2022. The NOI in assets in Israel in the first quarter of 2022 amounted to NIS 159 million, an increase of 9.7% from NIS 145 million in the corresponding quarter in 2021. The total NOI from income-producing assets in the first quarter of the year increased by 6.6% to NIS 178 million, compared with NIS 167 million in the corresponding quarter last year. The increase was due to the aforementioned increase in NOI from identical properties in Israel and to the initial acquisition of properties purchased in the amount of NIS 4.5 million, from properties abroad as a result of the sale of properties in Canada, France, the Netherlands and Serbia.
The FFO from income-producing assets in the first quarter rose by 16% to NIS 121 million, compared to NIS 104 million in the corresponding quarter last year. The company showed an increase in the occupancy rate of assets in Israel to 93.7%, compared to 93% at the end of 2021 and compared to about 90.9% at the end of the corresponding quarter last year.
That. The high-tech crisis will probably roll out to offices as well, it has happened in the past as well, how do you prepare for it?
A. “One of our advantages is that our customers and our properties do not include a single employment industry, we are very diverse in our tenants, all business companies in Israel rent our properties and not just high-tech, so we are less exposed to change. Offices, and this is due to the destructiveness of our tenants, so the high-tech crisis does not bother us even if it rolls into the field of office rentals. ”
That. What is the effect of the rise in interest rates on society, for better or worse?
A. “The rise in interest rates has almost no bad effect on the company because the debt consolidation of the entire company is long and index-linked, closed, and cannot be changed. We recognize that inflation is high so all of our leases are CPI linked so we are covered on both sides. In the medium term of up to 5 years changes in interest rates are less pronounced for us, which can work in our favor if we have to raise debt. This is the high rating we received today from a rating that will allow us cheaper financing costs. Through these funds ”
That. In the first quarter you continue with the dividend distribution policy, which is slightly different from the rest of the income-producing real estate companies, what is the motive?
A. “It is important for us as a profitable company to create an orderly mechanism in which the investing public and shareholders who believe in us will share in the company’s profits and create long-term certainty for them. 3% -3.5% per annum, which creates a certainty advantage for the investor in the company’s long-term shares ”
That. Well what are the growth engines for the future?
A. “We own 570 properties, some of which are our ‘land banks’ in which we may build in the future or sell rights. We are currently building 8 new projects not only in Tel Aviv but in other areas where we identify demand such as Holon Haifa and the like. Demand, and we are in the process of planning for additional projects. Understand the drama this program produces for us ”
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5.
This is not the situation in the world, nor in Israel.
תש
23/05/2022
18:58
0
0Citizens of the world have become accustomed to cheap money in the last decade because there was no choice after the property crisis in 2008 so gentlemen now you will understand how money is rising in price and that is just the promo …
closed
4.
The interest rate has plummeted
The interest rate goes up what I need a headache property to have a government bond
23/05/2022
18:36
0
0The interest rate goes up what I need a property Headache has a state bond Yield better than an apartment, without a solar water heater went, air conditioner broke down, arguments about tenants, enough to argue about the people enough interest rates have risen and will rise even then apartment prices fall
closed
3.
The stakeholder’s assets are disconnected from the interest rate elevator
And the collapse of high-tech. Patati… ..
23/05/2022
18:27
0
0And the collapse of high-tech. Patati… ..
closed
2.
With all due respect
To Ron
23/05/2022
18:05
0
0For Zabida, I would be wary of stakeholders in the field described
closed
1.
Regret in a bubble
Rising interest rates and the price index have hit and hit the wave of hedge investors
23/05/2022
17:57
0
0Rising interest rates and the price index have hit and hit the wave of real estate investors
closed