Green character?

Record profits for the mall giant Melisron, which owns Ofer Malls

Melisron, which owns Ofer Malls, publishes the 2021 reports, which reflect a year with a profit of NIS 1.5 billion, after a loss of NIS 250 million in 2020. The factors for profit: an increase in property value, cancellation of property value recorded in 2020, an increase in rents and an increase in mall revenues

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Of money

14/03/2022

Monday, 14 March 2022, 09:51 Updated: 10:12

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How many times have you heard of the distress of business owners in malls due to the introduction of characters, isolations and other corona limitations?

But here - Melisron, which owns Ofer Malls, which is definitely a reliable seismograph for identifying market trends, concludes 201 with a net profit of NIS 1.5 billion.

In the fourth quarter of 2021, the company recorded a record profit of approximately NIS 693 million.

It should be said immediately, not all of the company's profit line, stems from revenues from mall revenues, but from an increase in the value of assets, an erasure of a decrease in the value of assets that characterized the early days of Corona and was reflected in 2020 reports, a year that overshadowed closures, with losses of NIS 250 million.

And still: there has also been a jump in the group's mall revenues, which puts the business owners' complaints about damage due to the corona's limitations a bit disproportionate.

The significant increase is due to an increase in NOI due to an increase in rents in new contracts signed, options exercises and an increase in the index, as well as an update of the valuation of the Landmark Tel Aviv project and the aforementioned asset depreciation recorded in 2020. , Including a record in FFO (neutralizing corona relief), a decrease in the leverage rate and an increase of about 6% in tenant redemptions.

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The large mall in Petah Tikva, against the backdrop of signs detailing the corona restrictions.

Although the malls opened after the beginning of the year and despite the restrictions, the group's malls recorded a 6% increase in redemptions in 2021 (Photo: Reuven Castro)

Canyon Redemptions: More than in 2019, before the eruption of the corona

Regarding redemptions in malls, the company notes that since the malls opened at the end of February 2021, with the end of the third closure until the end of 2021, there has been a significant 6% increase in redemptions from Melisron malls,

compared to redemptions in the corresponding period in 2019. The Guardian of the Walls "in May and the impact of the fourth and fifth waves of the corona during the year.

In February 2022, with the onset of the decline in morbidity along with the recovery in the volume of activity in the economy, there was (according to RIS reports) an increase in the company's mall revenues, which intensified from the second half of the month.

During 2021, the company showed an increase in both occupancy rates and real rents, in commerce and offices, which indicates the strength of its assets.

Thus, in the field of commerce there was an average increase of about 5% in real rents for new contracts and exercise of options and in the field of offices there was an average increase of about 3% in real rents for new contracts and exercise of options.

Melisron has six projects that are in various stages of implementation and are expected to yield the company an annual NOI of approximately NIS 220 million upon completion and construction.

The most prominent of these is the Landmark flagship project in Sharona Tel Aviv (held with a partner in equal parts), which during 2021 raised the company's expected profit from NIS 190 million (NIS 95 million of the company's share) to NIS 307 million (approx. NIS 154 million part of the company) due to record demand for office space in the Tel Aviv area, mainly from large high-tech companies.

The construction of the first tower of the project is expected to be completed at the end of 2023 and to date leases have been signed for about a third of its area.

At the same time, Melisron announced progress in implementing the strategic plan, according to which the construction of 12 new projects will begin in the next two years: about 400 housing units for rent, nine additional projects in an area of ​​about 160,000 square meters of offices and commerce, and an advanced server farm. About 16 megawatts. These projects are expected to yield the company after their completion an annual NOI of NIS 200-230 million

. NIS 220 million is attributed to projects in the implementation stages and NIS 200-230 million is attributed to projects in initiation) - a figure that is expected to reflect a 40% increase in the company's NOI compared to the current annual NOI.

Ofir Sarid, CEO of Melisron (Photo: Sivan Farage)

Melisron Chairman Liora Ofer

: "Melisron concludes 2021 with a significant increase in operating results in both mall and office operations, indicating, among other things, the market's adaptation to the reality of a routine alongside Corona.

We continue to promote Melisron's strategic plan - which promotes the company's core business alongside the development of additional growth engines, entry into new areas and asset improvement and development moves.

All of these will ensure the continuation of the positive trend in the coming years as well. "

:" 2021 was a unique year of activity that brought the company excellent results. Record revenues, both in the field of offices and high-tech parks, where we are experiencing extremely high demand for new office space.

These days we are realizing the milestones we have set for ourselves and promoting the initiation of a variety of projects, including mixed-use projects, which will constitute a significant growth engine in the coming years.

During the year, we successfully raised a long-term debt of about NIS 2 billion at attractive interest rates, which indicates the confidence of the capital market and the banking system in the company, and brought about a significant decrease in the real interest rate of the company's financial debt

. R) and Ofir Sarid (CEO), is a company specializing in the construction, maintenance and management of malls and office complexes and high-tech campuses branded under the name "Ofer" and is one of the leading companies in Israel in this field. As of the end of 2021, Of about 872,000 square meters plus 26,000 parking spaces.

The rental areas are populated with high occupancy rates of about 98%.

Among Melisron's main properties: Ofer Ramat Aviv, Ofer HaKryon, Ofer Grand Canyon Beer-Sheva, Ofer Grand Canyon Haifa, Ofer Rehovot, Ofer Grand Mall Petah Tikva, Ofer Bilu Center outlet, Ofer Park Petah Tikva East, Ofer Petah Tikva Park West and more.

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• Malls

• Liora Ofer

• financial reports

• Melisron

• Corona