Israeli real estate investor Gazit-Globe moves to Q3 loss

Tue Nov 25, 2014 3:26am EST
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TEL AVIV Nov 25 (Reuters) - Gazit-Globe, Israel's largest real estate investment company, swung to a loss in the third quarter mainly due to losses from currency hedging transactions and said it would raise its dividend by 2 percent in 2015.

Gazit-Globe said on Tuesday it lost 13 million shekels ($3.4 million) in the third quarter, compared with a profit of 314 million a year earlier. The 2013 quarter was boosted by a one-time gain.

Rental income in the quarter fell 4 percent to 1.2 billion shekels, but was unchanged excluding exchange rate effects. Funds from operation rose 2 percent to 150 million shekels.

Net operating income, which reflects the group's core business, slipped 2 percent to 840 million shekels but rose 2 percent excluding exchange rate effects.

It will pay a dividend of 0.45 shekel a share for the third quarter, representing an annual payout of 1.8 shekels. The company said it will pay a quarterly dividend of 0.46 shekel a share in 2015.

Beginning in 2016, the company will announce changes to its dividend policy for the coming year in January.

Gazit-Globe operates in the United States through Equity One and in Canada through First Capital Reality Inc . It is the largest shareholder in Finland's Citycon and together with Citigroup controls shopping mall developer Atrium European Real Estate. (1 US dollar = 3.8627 Israeli shekel) (Reporting by Tova Cohen)