The rent reductions cut NIS 30 million from Amot’s revenues in the quarter

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To what extent has the corona affected the real estate company Amot in the office? Amot Aloni Hetz reports this morning the results of the second quarter of 2020 which indicate a relatively moderate erosion in adjusted income from rent (NOI) and a more significant cut in its profitability (FFO).

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God-WE Of Amot decreased by 5.6% and stood at NIS 168 million, compared to NIS 178 million in the corresponding quarter last year. The decrease is attributed to the concessions given by the company to the tenants of the shopping centers, who cut NIS 30 million from theWE The quarterly. On the other hand, Amot stated that additional income was recorded from new properties as well as from the occupancy of a property whose construction was completed in 2019.

Cash flow operating profit (FFO), The accepted profitability figure according to which income-producing real estate companies are measured, fell by 15.6% to NIS 114 million – the decrease is explained by the decrease in rental income, along with the increase in current taxes. In the second quarter against an index that rose by 1.5% in the second quarter of 2019.

Amot’s net profit fell sharply, mainly due to a decrease of NIS 104.9 million in the fair value of the company’s assets, compared with an increase of NIS 113 million in the second quarter of 2019. Net income in the second quarter amounted to NIS 9.18 million, a fall of 94% compared to the quarter The second of 2019.

Yesterday, Amot announced the appointment of Shimon Aboudrahm, CEO of the subsidiary Amot Entrepreneurship, to its next CEO position – Aboudrahm will take up the position on September 1, replacing Avi Musler, the company’s CEO for the past 15 years, who announced about a month ago On his desire to retire.

Outgoing CEO Musler said upon publication of the reports: “We are considering scenarios in which the income-producing real estate market will be affected by negative cycles. We monitor and manage the consequences of the crisis and throughout the period we are engaged in careful management, responsible and close to the tenants and are in close contact with them. We have initiated a number of moves, including the formulation of a graded relief plan for tenants in the shopping centers. Currently, the office activity is going well and we are not experiencing any significant changes. There is interest from tenants to rent land, the collection is almost full and occupancy rates remain high. ”

Avi Musler, the outgoing CEO of Amot Photo: Amit Shaal

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