JERUSALEM, March 26 Gazit-Globe,
Israel's largest real estate investment company, reported lower
quarterly profit due to higher revaluations of investment
properties in the year-earlier quarter.
Gazit-Globe said on Wednesday it earned 204 million
shekels ($59 million) in the first quarter, down from 345
million a year earlier. The fair value gain from properties for
investment and under development dropped to 25 million shekels
from 185 million a year earlier.
Rental income declined 8 percent to 1.23 billion shekels,
but was flat excluding the effect of changes in exchange rates.
Funds from operation rose 1 percent to 151 million shekels.
Net operating income (NOI), which reflects the group's core
business, slipped 7 percent to 817 million shekels but was up 1
percent excluding exchange rate changes.
Gazit-Globe operates in the United States through Equity One
and in Canada through First Capital Reality Inc
. It is also the largest shareholder in Finland's
Citycon and together with Citigroup controls
shopping mall developer Atrium European Real Estate.
Gazit-Globe, which has a market value of $2.2 billion,
focuses on supermarket-anchored shopping centres in major urban
areas, where growth is often double or triple the country's
The company believes the best opportunities are in major
cities in Europe and in particular, the company is targeting the
Nordic region, the Czech Republic and Poland. It is also
starting to build operations in southern Brazil.
Gazit-Globe will pay a quarterly dividend of 0.45 shekel a
share, representing an annual payout of 1.80 shekels.
Chief Executive Officer Roni Soffer said the company and its
subsidiaries enhanced their liquidity and strengthened its
balance sheet during the quarter.
"We thereby remain well-positioned to take advantage of
opportunities that arise in the global real estate market," he
($1 = 3.4795 Israeli Shekels)
(Reporting by Steven Scheer)