Company News

Israel real estate developer Gazit-Globe Q2 profit falls, cuts 2018 FFO view

JERUSALEM, Aug 21 (Reuters) -

* Gazit-Globe , Israel’s largest real-estate company, reported on Tuesday a drop in quarterly profit, hurt by a lower fair value gain of its investment properties.

* The company said it earned 72 million shekels ($19.7 million) excluding one-time items in the second quarter compared with a 371 million a year earlier.

* The net fair value loss of investment property and investment property under development in the quarter was 125 million shekels compared to a fair value loss of 6 million in the corresponding period last year.

* It also posted a decrease in the gain on financial derivatives of about 40 million shekels.

* Economic funds from operations (FFO), a measure of cash generated, was flat at 175 million shekels.

* Same property net operating income grew 3.1 percent.

* Gazit lowered its 2018 estimate for economic FFO to 689-700 million shekels from 702-717 million, citing an earlier than expected disposal of shares at its Regency unit. As a result, its estimate for economic FFO per share was cut to 3.57-3.63 shekels from a mid-point of 3.68.

* The company said it would pay a quarterly dividend of 0.38 shekel a share.

* ($1 = 3.6584 shekels) (Reporting by Steven Scheer)