Azrieli Group Ltd. (TASE: AZRG), one of Israel’s largest malls owners, today reported higher net operating income (NOI), but lower net profit for the second quarter of 2012.

NOI rose 13% to NIS 269 million for the second quarter from NIS 239 million for the corresponding quarter of 2011, and funds from operations (FFO) from real estate activity rose 15% to NIS 180 million for the second quarter from NIS 157 million. The increase in NOI was from higher same-property NOI (higher rent), the acquisition of a mall in Houston, Texas, and the opening of two new malls in Acre and Kiryat Ata, north of Haifa.

However, net profit fell to NIS 198 million (per share) from NIS 388 million. The company attributed the decline to moderate revaluations during the second quarter, compared with the previous offset by the increase in NOI and a decrease in the financing expenses.

Azrieli reported a pretax NIS 99 million and net NIS 74 million fair value revaluation of its properties, mainly due to the rise in the Consumer Price Index (CPI) during the second quarter. The company reported a pretax NIS 370 million fair value revaluation for the corresponding quarter of 2011.

The occupancy rate at all of Azrieli’s Israeli malls was 100% during the second quarter, and the occupancy rate of its Texas malls was 89%.

Azrieli’s fuel and industrial subsidiary Granite Hacarmel Investments Ltd. (TASE: GRNT) reported a net profit attributable to controlling shareholders of NIS 13 million for the second quarter, compared with NIS 100,000 for the corresponding quarter. Azrieli owns 60.61% of Granite Hacarmel. Azrieli added that the pretax value of its 4.8% stake in Bank Leumi (TASE: LUMI) fell by NIS 162 million during the second quarter, due to the 20% drop in the bank’s share price, but that, net of tax, the increase was NIS 135 million. Azrieli added that Leumi Card Ltd., in which it owns a 20% stake, has not yet published its financial report for the second quarter…Read More>>

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