Jerusalem Economy Ltd. reports its results for the first half of 2011
Net profit attributed to shareholders rose by 433% to about NIS 352m
Overall profit attributed to shareholders rose by 1417% to about NIS 440m
Company revenues from rentals rose by 28% to about NIS 766m
The Company’s operating profit rose by 54% to about NIS 748m
Oded Shamir, CEO of Jerusalem Economy: “The merger with Darban will make a positive contribution to the Company’s growth in the next few years, over and above the operational and financial benefits linked to this move.”
Jerusalem Economy Ltd., a member of the Fishman Group, reports its financial results for the six month period ending on June 30, 2011:
Net profit attributed to the shareholders amounted to about NIS 352 million in the reporting period, compared to a profit of about NIS 66 million in the same period last year. The net profit attributed to shareholders in the second quarter amounted to about NIS 190 million, compared to about NIS 20 million in the same period last year.
The overall profit attributed to the shareholders amounted to about NIS 440 million in the reporting period, compared to about NIS 29 million in the same period last year. The overall profit attributed to shareholders in the second quarter amounted to about NIS 196 million, compared to a loss of about NIS 11 million in the same period last year.
The operating profit amounted to about NIS 748 million compared to about NIS 485 million in the same period last year.
Gross profit from income yielding assets (NOI), including income from rents and from management and maintenance, less the cost of managing and maintaining buildings during the reporting period, amounted to about NIS 638 million, compared to about NIS 490 million in the same period last year. Gross profit from income yielding assets (NOI), including income from rents and from management and maintenance, less the cost of managing and maintaining buildings in the second quarter, amounted to about NIS 334 million, compared to about NIS 240 million in the same period last year.
Company income from letting amounted to about NIS 766 million in the reporting period, compared to about NIS 597 million in the same period last year. Rental income in Israel amounted to about NIS 281 million, an increase of 29% compared to about NIS 218 million in the same period last year. Rental income overseas amounted to about NIS 485 million, an increase of 28% compared to about NIS 379 million in the same period last year.
On 30.6.2011, the Company (including the share of holders of rights that do not grant control of consolidated companies) held space for rent of about 4.3 million m2, including about 2.3 million m2 overseas. At 30.6.2011 Company properties were let to about 9,037 tenants, compared to about 7,917 tenants on 31.12.2010. The net growth in the number of tenants is due to the acquisition of Darban (some 1,663 tenants), less a decrease of about 700 tenants due to the sale of a rental property (“Kipling”) in Canada by Mivnei Taasiya Ltd. The average
occupancy rate of Company properties on 30.6.2011 was 88.2%.
Company capital amounted to about NIS 3,853 million compared to about NIS 3,079 million at 31.12.2010.
Capital attributed to Company shareholders amounted to about NIS 2,906 million on 30.6.2011, compared to about NIS 2,065 million at 31.12.2010.
It should be noted that on 13.7.11 Ma’alot announced confirmation of the "ilA-" rating of JEC and Darban, and a change in the forecast rating of JEC and Darban from negative to stable.
On 7.2.2011 the merger with Darban was completed. As of 30.6.2011, Jerusalem Economy held 100% of Darban’s shares. Following the merger, the consolidated company recorded a profit of about NIS 123 million.
Oded Shamir, CEO Jerusalem Economy: “For the first time the merger with Darban is expressed in our financial results. The merger has and will continue to have a significant effect on the profitability of Jerusalem Economy. Apart from that I believe that the merger will make a positive contribution to company growth in the next few years, over and above the operational and financial benefits linked to the implementation of this move.”
Contribution to the Community: The Company, as a leading company in the field of construction for rent in Israel, considers it has an obligation to the social environment in which it operates. The Company exploits its range of abilities on behalf of the community, and weaker groups in particular, with direct donations, by making premises available for social and cultural activities, and by making its buildings accessible for the handicapped. During the reporting period the Company donated a total of about NIS 2,400,000 compared to about NIS 1,482,000 in the same period last year, for the purposes described above. The space provided by the Company, at no charge, for welfare and cultural activities, was about 16,500 m2, and the indirect annual rental value of this donation amounts to about NIS 2.5 million.
About the Company: Jerusalem Economy operates, independently and through consolidated companies, in various fields of real estate, including letting income-yielding property for commercial, industrial, high tech, office and logistical uses, as well as for residential and hotel purposes, land acquisition and development of land, construction of buildings mostly intended for letting all over Israel and in many other countries: the United States, Canada, Germany, France, Holland, Poland, Switzerland, Portugal, Ukraine, Russia, Belarus, Lithuania, Serbia, India and Thailand. The Company’s geographical spread, and the number and variety of its tenants constitute a valuable advantage for the Company’s development and strength.