The increase in profit was recorded thanks to growth in current operations, the improvement of the shopping center in Ganei Tikva, which was completed, and the improvement of additional shopping centers that are expected to open soon in Tira and Kfar Saba (Phase A – Osher Ad complex).
The NOI in the third quarter grew by about 47% to about NIS 14.6 million.
In the first nine months of 2021, the company’s NOI increased by 44.6% to NIS 40.5 million and net profit rose sharply to NIS 61.5 million.
At the same time, the company reports the purchase of 3,750 square meters, for the use of the company and companies owned by the controlling owner, in the LYFE office tower in Bnei Brak for about NIS 50 million.
Rani Zim, credit: Meir Edri
Rani Zim, Chairman of Rani Zim Shopping Centers“We conclude the first nine months of the year and the third quarter with a significant improvement in the company’s operating performance and a sharp increase in net profit. This is in addition to the start of activity in the field of housing in Arab society, in which we see very significant potential, mainly against the background of the experience and expertise gained by ZIM shopping centers in this sector.
Avishai Avraham, CEO of Zim Shopping Centers, said: “Following the positive summary of the first nine months of 2021, we continue the significant development processes according to our business plan. In Arab society, we will open the center in Tira in the coming weeks, for which agreements have been signed for full occupancy, and in 2022 the new centers in Taibeh are also expected to open. And Rahat, which we are already close to fully marketing their retail space. In 2023, we will also open the centers in Tamra and Umm al-Fahm (Phase II). .
As part of our expanding activity in the field of neighborhood centers, we are preparing for the opening of the shopping center in Ganei Tikva, which in our estimation is expected to become a magnet for residents of the entire area. In addition, this year we entered into an agreement to purchase 50.01% of the rights in a commercial center under the ‘Ono Center’ in an area of approximately 18,000,000 square meters located in the Ono Valley, and we are already in accelerated marketing stages of the project, located in an area characterized by significant development momentum.
Following the opening of the Ganei Tikva shopping center and the Tira shopping center, which are expected to open in January 2022, and the first phase of the Kfar Saba project, in which the Osher Ad branch will open in March 2022, the company will have 10 active properties throughout the country. Quality trading, and we work for continuous improvement and optimal operational efficiency continuously. We intend to continue to work for the development and expansion of the company’s asset portfolio while promoting its business plans in new areas as well, in accordance with the knowledge and experience accumulated in the company. “
CompanyRani Zim Shopping Centers‘Published its financial results for the third quarter and the first nine months of 2021.
Highlights of the third quarter results 2021
The company’s revenues in the third quarter increased by 59% to NIS 18 million, compared with NIS 11.3 million in the corresponding quarter last year. Most of the increase is attributed to the first consolidation of income from properties in Umm al-Fahm and Yarka starting in the fourth quarter of 2020, and also to the fact that in the corresponding quarter last year, tenants were given relief due to the Corona virus crisis.
Revenues, including the results of the company treated according to the equity method according to its holding rate, which holds about 50% of the Netivot shopping center, increased by 33.8% in the quarter to NIS 19.9 million, compared with NIS 14.9 million in the corresponding quarter last year.
The NOI in the third quarter of 2021 increased by 47% to NIS 14.6 million, compared with NIS 9.9 million in the corresponding quarter last year. The NOI from identical assets increased in the quarter by 28.5% to NIS 11.3 million, compared with NIS 8.8 million in the corresponding quarter last year.
The company’s FFO, according to the management’s approach, climbed to NIS 5 million in the third quarter, compared with NIS 1.9 million in the corresponding quarter last year.
The company recorded an increase in the value of real estate for investment in the quarter of NIS 47 million, compared with an increase in value of NIS 7.9 million in the corresponding quarter last year. To be opened to the public soon.
The net profit in the third quarter of 2021 jumped to about NIS 35 million, compared to about NIS 8.1 million in the corresponding quarter last year.
As of September 30, 2121, the company has cash and cash equivalents in the amount of approximately NIS 44.7 million.
As of September 30, 2121, the shareholders ‘equity attributed to shareholders increased to NIS 537.9 million, compared with shareholders’ equity of NIS 451.8 million at the end of 2020.
Highlights Results of the first nine months of 2021
The company’s revenues in the period increased by approximately 61.8% to approximately NIS 50 million, compared with approximately NIS 30.9 million in the corresponding period last year. Most of the increase is attributed to the first consolidation of property revenues in Umm al-Fahm and Yarka starting in the fourth quarter of 2020, and to the fact that last year the company granted relief to its tenants due to the period when the centers were closed due to government directives due to the corona virus.
Revenues, including the results of the companies treated according to the balance sheet value method in accordance with their holding rate, increased in the period by approximately 36.5% to approximately NIS 55 million, compared with approximately NIS 40.3 million in the corresponding period last year.
The NOI in the first nine months of 2021 increased by 44.6% to NIS 40.5 million, compared with NIS 28 million in the corresponding period last year. The NOI from identical assets increased in the period by 32.2% to NIS 32.6 million, compared with NIS 24.6 million in the corresponding period last year.
The company’s FFO, according to the management’s approach, increased by 76.6% in the period by NIS 11 million, compared with NIS 8.1 million in the corresponding period last year.
In the first nine months of the year, the company recorded an increase in the value of investment real estate in the amount of NIS 81.3 million, compared with NIS 8 million in the corresponding period last year. That the company recorded in its financial statements for 2020, and updating the value of the assets in accordance with current valuations.
The net profit in the first nine months of 2021 jumped to NIS 61.5 million, compared with NIS 16.2 million in the corresponding period last year.
Simultaneously with the publication of the financial statements, Rani Zim Shopping Centers reports that the company, together with the controlling shareholder, is expected to purchase a total area of 7,500 square meters in the LYFE office tower being built by Ashtrom Properties and Dan Transportation in Bnei Brak. The company’s share in the transaction is 3,750 square meters and a total amount of NIS 50 million. The areas will be used by the company’s offices, and in addition will be leased, among other things, to companies controlled by the controlling shareholder, and in particular to it, the public Capital Van and the activities of the Psagot investment house under its control.
Recent events
October 2021 The company received a Form 4 in preparation for the population of the shopping center project in the locality of Tira in the Sharon, which covers an area of approximately 5,100 square meters. The annual NOI that is expected to yield the project at full capacity is NIS 4.5 million.
September 2021 The company received a building permit for the establishment of the commercial center in the city of Rahat. In the first phase, the company will build about 6,700 square meters of commercial space as part of the project. The company estimates that the estimated cost of phase A of the project is NIS 50 million, and the annual NOI that the project is expected to yield at the end of this phase is about 6.3 NIS 1 million at full capacity.The company has begun the construction stages of the project.
September 2021 Following the signing of a memorandum of principles in May, the company entered into an agreement to purchase 50.01% of the rights in the Ono Center shopping center for the construction of an 18,000-square-meter building in the Ono Valley for NIS 132.5 million.
August 2021 The Company’s Board of Directors approved the appointment of Mr. Avishai Avraham as the Company’s CEO.
August 2021 The company has updated that it has entered into a memorandum of principles (suspended) for the initiation and construction of a commercial center in Daliyat al-Carmel in an area of approximately 7,800 square meters. a million shekels.
July 2021 The company has updated on entering the field of initiating and establishing saturated residential construction projects in Arab society. In order to promote this activity, a company will be established that will operate in this field and will be 86% maintained by Rani Zim Shopping Centers. The company intends to establish hundreds of housing units in the Arab company in the next two years.
July 2021 The company received a building permit for the construction of Phase A in the Taibeh shopping center, which includes most of the planned area of the project, amounting to approximately 8,400 square meters. The project is expected to open to the public by the end of 2022. NIS 8 million and the annual FFO expectation as of this quarter is about NIS 5.6 million.
August 2021 – The company received the commercial center in Ganei Tikva, which includes about 9,200 (4,600 square meters of the company’s share), after receiving an occupancy permit for the center. The project is expected to open to the public in January 2021, Annual amount of about NIS 5.8 million.
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