Alony-Hetz Properties & Investments Ltd.
Amot owns 101 properties, leased to some 1,600 tenants, covering a total area of 1.3 million square meters, including 454 thousand square meters of parking lots. The properties include office and hi-tech buildings, malls, shopping centers, supermarkets, industrial parks, logistics centers and central bus stations. Amot’s properties are valued at more than NIS 10.7 billion, and the occupancy rate of the properties is 97.3%. Most properties are located in the centers of large cities and in-demand areas.
Amot closed 2017 with an NOI of NIS 635 million, an FFO of NIS 430 million (excluding non-recurring financing expenses from debt recycling) and a net income of NIS 428 million. As of December 31, 2017, shareholders’ equity totals NIS 4.3 billion, which constitutes 40% of the total balance sheet, as well as unencumbered assets of 97% (as of December 31, 2017, NIS 9.8 billion). Amot’s leverage rate is 47% and its weighted average until maturity debt term is five years.
Amot’s forecast for 2018 – NOI of NIS 672-678 million, FFO (non-financial) of NIS 474-478 million and FFO per share of 141-143 agorot.
Business Strategy and Key Properties
Amot is striving to expand its operations in Israel’s income-generating real estate sector by acquiring properties, initiating and developing properties and merging with other corporations active in the sector. Amot’s properties are multi-use – 53% of the value of real estate is in offices, 23% is in commercial use, 16% is in industrial use and logistics, while 6% of value is in a cluster of 36 supermarkets which are located in city centers.
Among Amot’s most outstanding properties are Atrium Tower in Ramat Gan, 30 Ha’Barzel in Ramat Ha’Hayal, Amot Investments Tower, the Beit Amot Mishpat Complex, the Amot Insurance Complex, all in Tel Aviv, Pelephone House in Givatayim, Amot Platinum Tower in Petah Tikva, the Arim Mall in Kfar Saba, the B7 commercial center in Be’er Sheva, Kiryat Ono Mall, Orot Mall in Or Akiva, logistics centers in Modi’in and industrial properties in Lod, Caesarea, Be’er Sheva and Netanya, and the Jerusalem Central Bus Station.
The ToHa Project (Tozeret Ha’Aretz, Tel Aviv) – Amot and Gav-Yam Land Company Ltd. (“Partnership”) have joint rights (equally) in 17 dunams of land, bordering on Tozeret Ha’Aretz, Yigal Alon and Derech Ha’Shalom streets in Tel Aviv. The Partnership is currently working on an office building that offers 57 thousand square meters (gross) above ground for marketing and 950 parking spaces. Construction of the tower is in its advanced stages. The Partnership believes that the construction of ToHa1 is expected to be completed by the end of 2018 and that the tower will be populated during 2019. The scope of Amot’s investment in ToHa1 is estimated at NIS 950 million. The Partnership expects that on the basis of contracts signed and expectations for the rental income, the NOI to be generated by the tower, under full occupancy, will be between NIS 90 million to NIS 100 million (Amot’s share is NIS 45-50 million) In August 2018, the Local Planning and Building Committee of Tel Aviv approved the deposit of a municipal building plan for additional building rights (within the framework of Tel Aviv/ 5000) for the construction of an additional office tower (ToHa2), to cover an area of 140 thousand square meters above ground (Amot’s share – 50%).
Amot Holon – In July 2016, Amot won a tender offered by the Holon Municipality for a commercial, office and hi-tech industry project in the industrial zone of Holon, as part of a combination deal with the Municipality for 99 years, with an option for extension. The project is located on 11 dunams and will include a 13-stories office tower above commercial areas, a total area of 36 thousand square meters and a 4 floor underground parking lot.
Shufersal Modi’in – Online Logistics Center – In May 2018, Amot entered into an agreement with Shufersal Ltd. whereby Amot would sell to Shufersal, 25% of the real estate leasing rights. The parties will build, under a joint venture format, a logistics center covering 34 thousand square meters and another 6 thousand square meters which are designated for offices. The share of rights in the project – 75% for Amot and 25% for Shufersal. The logistics center will be leased to Shufersal for 15 years with an option for extension.
The Lehi Complex in Bnei Brak – in July 2018, Amot signed an agreement with Allied Real Estate Ltd. (“Allied”) according to which Allied would transfer half of the capitalized leasing rights on a plot of 16.4 dunams on Lehi Street in Bnei Brak, according to a land value of NIS 200 million plus VAT (Amot’s share in the land rights – NIS 100 million). The investment in construction of the project (including the land component) is estimated by the parties at NIS 800 million (Amot’s share is 50%).
Amot has land reserves for promotion and development, on which it initiates projects, gradually, in accordance with its ongoing examination and analysis of the market situation and the level of demand. Amot is also promoting plans for the construction and improvement of several other properties.
Malls, Shopping Centers, and Supermarkets
Amot’s shopping malls are located in city centers and constitute major entertainment centers, attracting thousands of visitors. Amot owns 18 successful malls and commercial centers. In addition, it owns 36 properties that serve as independent supermarkets, most of which are located in city centers in the central region. Amot also owns 14 industrial parks.
Smart Investments in Successful Ventures
Amot Investments owns large office towers in Israel that are leased to professionals, commercial companies, and hi-tech companies, with 88% of the value of its properties located in the Gush Dan region.
Financial Strength and Reputation
Amot believes that the crucial factors for success in the income-generating real estate field are knowledge and experience in marketing, managing, operating and improving properties, a quick and reliable response to tenants’ needs, dispersal of risks by geographic distribution and distribution of property types, financial strength, full transparency vis-à-vis the capital market and the public, identification of business opportunities and rapid and decisive response.
ranking of leading urban renovation companies in Israel CofaceBdi 2017 To continue reading the article in Hebrew
47% of the contractors expect prices to continue rising In spite of Government efforts – only 39% of the contractors expect an increase in branch’s activity this year, 47% of the contractors expect dwelling prices to continue rising, 82% of the contractors expect the collapse of construction realization companies to continue this year too. […]
CofaceBdi Combined risk index summary for October 2017 Deterioration in the Combined risk index of Israel’s economy * About 13.25% of the companies were rated in high and dangerous risk levels * Heading the weak and dangerous branches: Coffee shops and Transport services * Heading the strongest and secure branches: Pharmaceutical and cosmetics industry and […]