Azrieli, Melisron reported a sharp recovery in malls


0


For Israeli shopping mall giants, Azrieli Group Ltd. (TASE: AZRG) and Melisron Ltd. (TASE: MLSR), the first quarter of 2021 has been divided into completely different periods. The first saw a shutdown that led to the shopping centers being closed by government orders, while the second ones were opened according to Purple Tag rules, and the buyers returned. The closure (the third to which Israel was subjected) that began in December 2020 ended on February 20, 2021, and since that date shopping centers have been opened, a situation that has remained in place with the receding of the Coronavirus pandemic in Israel. Azrieli and Melisron’s revenue fell sharply due to the concessions they made to the tenants in their malls. In the case of the Azrieli Group, revenue from rental, administration, maintenance and sales decreased by 21% to 437 million NIS, while in the case of Melissron these revenue items decreased by 31% to 260 million NIS. However, both companies experienced a sharp recovery in the days following the end of the shutdown, despite the need to meet Purple Tag requirements (due to expire June 1, 2021). Azrieli states, for example, that revenues reported by tenants at its malls in March 2021 were 30% higher than in the same month in 2019. The figure excludes returns from tenants who have not yet returned to full activity due to regulatory restrictions. Such as such as cafes, restaurants, movie theaters, fitness clubs, etc. The comparison is made with 2019 because the first shutdown began in March 2020. Melissron also announces sharp growth in rental income in the second half of the first quarter of 2021 compared to a similar period in 2019. “The growth was” Melissron CEO Ophir Sarid wrote. In revenue is particularly noticeable in clothing and footwear, where the growth was 36%, and in home design stores, where the growth was 62%. The trend continued in April, as we saw growth according to RIS (Retail Information Systems) data compared to the corresponding period. ” Melissron reported that it gave tenants a rent exemption of 96 million shekels in the first quarter of 2021 for the days their youngsters were closed. This compares with an exemption from rent of 213 million shekels in 2020 as a whole. In Azrieli, the rent exemption in the first quarter of this year amounted to 115 million shekels. Shopping malls and hotels are the main commercial victims of the Coronavirus pandemic among income-generating real estate. The Azrieli Group has twenty malls and malls in Israel (including one under sale), with a total area of ​​351,000 square meters and a value of 12.46 billion shekels. This represents 36% of its real estate portfolio, which amounts to 35.2 billion shekels. Related materials Despite Covid, Azrieli’s profits rise in the first quarter The group also owns a small amount of hotel business, with assets of 296 million shekels (1% of its portfolio). The rest of Azrieli’s income-producing portfolio has so far provided significant protection against the effects of the coronavirus pandemic. The group has 17 office buildings in Israel with an area of ​​640,000 square meters, eight office buildings abroad with a total area of ​​248,000 square meters, four protected residential properties in Israel with 1034 housing units and 150,000 square meters of space, as well as investments in data centers and others. Origins. The group says that the proportion of malls and malls in its balance sheet will decrease over time due to increased development activity in the coming years in offices and protected housing. In the first quarter of this year, Azrieli Group recorded a 27% decrease in NOI to 301 million NIS, and a 25% decrease in FFO to 228 million NIS, despite a 20% increase in net profit to 110 million NIS due to very large writing operations. A decline in asset valuations was recorded in the first quarter of 2020 due to the outbreak of the Coronavirus pandemic. The trend was similar in Melesron. NOI decreased by 34% in the first quarter to 189 million NIS, and FFO decreased by 38% to 121 million NIS, but the company recorded a net profit of 143 million NIS, compared to a net loss of 86 million NIS in the corresponding quarter in 2020, when the company made cuts Great on asset appraisals. Melissron owns sixteen shopping centers with a total area of ​​499,000 square meters, valued at 14.3 billion shekels; Five real estate, each with one tenant, with a total area of ​​41,000 square meters, valued at 1.1 billion shekels; And five office sites have been adapted for technology companies with a total area of ​​231,000 square meters, valued at 3.6 billion shekels. Melissron’s greater reliance on the commercial sector, compared to Azrieli, has caused it to be hit harder by the outbreak of the Coronavirus, but this will change with the completion of the Sarona Tower in Tel Aviv and other buildings in Ofer Park in Petah Tikva. Carmel Emblem Park. Posted by Globes, Israel business news – en.globes.co.il – May 26, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021


Like it? Share with your friends!

0

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win
Mitchel

0 Comments

Your email address will not be published. Required fields are marked *