Gazit-Globe profit dips as investment property value slides

Wed Mar 20, 2013 4:00am EDT
 
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TEL AVIV, March 20 (Reuters) - Gazit-Globe, Israel's largest real estate investment company, reported a decline in quarterly net profit that was weighed down by a drop in the fair value of investment properties, offsetting higher rental income.

Gazit-Globe said on Wednesday it earned 224 million shekels ($61 million) in the fourth quarter, down from 269 million a year earlier.

Property rental income rose 10 percent to 1.37 billion, while net operating income increased 7 percent to 911 million.

The fair gain from investment property and property under development slid to 441 million shekels from 843 million.

Funds from operations jumped 23 percent to 137 million shekels.

During 2012, Gazit-Globe bought 30 income-producing properties for 3.8 billion shekels and invested 1.9 billion shekels in new development and redevelopment projects.

Gazit-Globe is "well positioned for growth over the long term as we continue to seize opportunities in the various territories in which we operate," said Roni Soffer, the company's president.

Gazit-Globe will pay a fourth-quarter dividend of 0.43 shekel per share, or 12 cents, up from 0.4 shekel a share in the third quarter. The company has said it would raise its 2013 dividend to 1.72 shekels a share, or 0.43 shekel per quarter.

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.