Real Estate Investment Fund
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Reports a decrease of about 7% in NOI and about 10% in real FFO. The fund has published an update to its forecasts for 2020 with NOI in the range of NIS 330-340 million. And FFO in the range of NIS 235-245 million. A decrease of about 5% compared to the previous forecast.
Income from assets less operating expenses (WE) In the fourth quarter of 2019, they decreased to NIS 79.5 million, compared with NIS 85.2 million in the corresponding quarter last year, a decrease of approximately 7%.
The real FFO Amounted to NIS 57 million, a decrease of about 10% compared to NIS 63.1 million in the corresponding quarter last year.
The net profit The quarter amounted to NIS 4 million, a decrease of 94% compared to NIS 67 million in the corresponding quarter. Most of the decrease is attributed to real estate revaluations, which offset NIS 57 million from the company’s profits. However, a contraction in financing expenses to NIS 18 million, compared with NIS 53 million in the corresponding quarter, helped the net profit line.
Reit 1 – Summary of financial results
Source: REIT Reports 1
Lower forecast further for 2020
The company updated its forecasts for 2020, in which the company’s NOI forecasts are estimated in the range of NIS 330-340 million (compared to 335-350 in the May forecast). The company’s FFO forecast for 2020 is in the range of NIS 235-245 million (compared to 240-255 in the May forecast).
Update NOI and FFO forecast for 2020
Source: REIT Reports 1
According to the company’s dividend distribution policy – the expected dividend for 2020 will be NIS 128 million (72 ag per share) and NIS 32 million each quarter – the current dividend was approved by the board of directors and is expected to be distributed in September.
Company stock Completing a decline of about 35% since the beginning of the year, and trading far from the February high, while trading near the 2018 levels, in the last month the company’s stock has stabilized and is trading just above the bottom of June. The company’s market value is about NIS 2.3 billion.
Shmuel Said, CEO of REIT 1: “In the short term, the consequences of the Corona crisis have affected the company’s results relatively moderately, especially in the commercial and parking areas. It is worth noting that our commercial property portfolio consists mainly of open shopping centers – less affected than the closed centers. And examination in accordance with the specific circumstances of each application, in particular by way of layout of rent charges.
“In our estimation, the damage to revenues in the areas of offices, industry and logistics and Saudi hospitals in 2020 is not expected to be significant. As of the date of the report, the collection rate is as high as in the months before the crisis. “Accessibility to the capital market and bank credit, a high level of liquidity and a low debt burden help us to cope well with the effects of the crisis. Not only that, we have opened a window to examine and purchase income-producing assets at attractive prices.
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