silverstein properties limited - tase
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Silverstein Properties Limited
September, 2019
Disclaimer
The information provided by this presentation does not describe the Company's activity in a full and exhaustive manner. It does not replace the Company's reports, and should
be read along with the reports filed by the Company, including the Company's prospectus and the Company's periodic and immediate reports.
This presentation may include forward-looking information, as defined in the Securities Law, 1968. This information may include forward-looking statements, including forecasts,
evaluation, pro forma figures, estimates and other information relating to future events and issues. Forward-looking statements may relate to, among other things, revenues,
earnings, cash flows, capital, expenditure, and other financial items. Forward-looking statements may also relate to our business strategy, goals and expectations concerning our
market position, future operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and can be
identified by the use of forward-looking terminology such as the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, and
similar terms and phrases.
Any forward-looking information contained in this presentation is based, in addition to existing information of the Company, on present Company expectations and evaluations
regarding future developments and trends and on the interaction of such developments and trends. Although we believe the assumptions upon which any forward–looking
statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be
incorrect. Our business and operations involve risks and uncertainties, many of which are outside our control, and one of which, or combination of which, could materially effect
our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current expectations and are not
guarantees of future performance.
Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in this presentation depending on a variety of
factors. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. The Company undertakes no
obligation to update any forward-looking statements, to report events or to report the occurrence of unanticipated events that may lead to the actual events, results, performance,
circumstances or achievements of the Company being different than as envisaged by such forward looking statements.
In addition, the presentation may include data and assessments based on external sources that have not been independently examined by the Company and therefore the
Company is not responsible for their accuracy. The Company does not undertake to update the information included in the presentation, in whole or in part, in order to reflect
events and / or circumstances that will occur after the date of the presentation.
This presentation does not constitute an offer for the purchase of the Company's securities or an invitation to receive offers. The aforesaid does not constitute a recommendation
or opinion, or instead of an independent examination and personal consultation according to the special data of each investor.
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2019 FINANCIAL HIGHLIGHTS
$3.6 Billion of total assets and $222
Million of bonds traded on TASE
H1 2019 NOI of $66 million vs. $60 million in H1 2018
Low leverage of 38.3% Net Debt/CAP
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* FFO based on management approach
H1 2019 FFO* of $49 million vs. $50 million in H1 2018
$2.1 Billion of total equity and $1.5 Billion of
shareholders equity
H1 2019 cash flow from operation of $59 million
vs. $58m in H1 2018
$137 million of cash and restricted cash as
of 30.06.19
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Main events - 2019
The Company launched its debt investment strategy and injected a total investment amount of approximately $11 million
as of 30.6.19.
The Company purchased an office building in the Philadelphia’s Central Business District (“1735 Market Street”), with an area of
approximately 1.3 million square feet for a total of $451.6 million.
The Company holds indirectly 10.0% of the property.
The Company issued a second offering by way of an expansion of the listed series (Series A) with a par value of 185
million NIS.
The Company entered into a purchase and sales agreement to sell an office and studio building (part of the Galaxy
portfolio) for $230 million (SPL share is 16.67%). The Company intends to use the proceeds for a partial repayment of the
loans originated for the purpose of purchasing the Galaxy portfolio.
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Main events - 2019
The Company is in the final stages of the completion of the major renovation of 120 Broadway.
The Company recorded a fair value adjustment that lowered the investment property value of 529 Fifth Avenue by $35MM.
The reduction is attributed to the retail slowdown on 5th Avenue corridor. The Company will continually monitor the retail
market of the 5th Avenue corridor to determine whether any future adjustments are needed. However, such amounts would
not be significant to the Company’s overall financial position.
The company signed new leases during 2019 including: 7 World Trade Center: Moet Hennessy; SOM; Broadcast of Music
and Zola, 120 Wall: Excess Line Association of New York and also retenanted with Accenture Plc (NYSE; ACN, MK =
$130B) as the result of the acquisition of Droga 5. link to the article of MH
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PORTFOLIO LOCATION (Manhattan)
THE AMERICAS TOWER 1177
Avenue of the Americas
529 FIFTH AVENUE
THE EQUITABLE
BUILDING 120 Broadway
120 WALL STREET
Silver Towers 620 W
42ND STREET
7 World Trade Center
250 Greenwich Street
River Place 650 W
42ND STREET
520 WEST 41st STREET
The Galaxy Project
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1735 Market Street – NEW ACQUISITION
SPL share 10.00%
SPL invested $16.5M of equity in the asset
~1.3M SQF of rentable office space located in the Central
Business District of Philadelphia, PA.
The anticipated Cap Rate for the first year is approximately 6.1%.
Total cost of $451.6 M
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FINANCIALS
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BALANCE SHEET (in 000’ USD)
June 30th , 2019 December 31st , 2018
Cash and cash equivalents 116,306 75,592
Restricted cash 16,373 14,447
Investment properties 2,910,220 2,945,220
Investment in associates 435,975 412,155
Other 124,992 120,584
Total Assets 3,603,866 3,567,998
Loans from financial institutions, net
(long term)1,215,724 1,213,757
Debentures payable, net 221,867 162,533
Other 39,985 45,790
Total liabilities 1,477,576 1,422,080
Total equity attributable to Company's
equity holders1,495,723 1,497,324
Non-controlling interests 630,567 648,594
Total equity 2,126,290 2,145,918
Audited
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P&L (000’ USD)
H1,2019 H1,2018 2018
Rental and management fees
revenues110,214 103,460 209,809
Operating expenses (44,075) (43,933) (95,687)
Gross profit 66,139 59,527 114,122
Revaluation of investment
properties, net(45,525) (8,875) (15,659)
Share of profit from associates,
net(3,904) 4,978 (7,042)
General and administrative
expenses(919) (275) (1,358)
Net operating profit 15,791 55,355 90,063
Gains on foreign currency
translation, net(8,759) 3,131 7,295
Finance costs, net (27,214) (25,829) (51,962)
Net profit (20,182) 32,657 45,396
Adjusted FFO* 49,374 50,173 81,368
Cash flows from operations 59,269 58,392 108,704
* FFO based on management approach
Audited
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Appendix
New leases
New leases
Renovation of 120 Broadway.
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