Aura: Growth of a profit of 18 m – capital market

Residential construction company

Aura
+ 1.31%

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opening:245

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low:243

change:203,384

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Sold 76 apartments in the last quarter of 2020 during which it showed a growth of about 43% in revenues compared to the corresponding quarter, to a level of NIS 256 million. The company, which focuses on urban renewal projects, reported a quarterly profit of NIS 18.4 million, double the corresponding period. Operating profit was NIS 34 million, compared with NIS 22 million in the corresponding quarter. Aura announced a dividend of NIS 4.2 million.

In the whole of 2020, the company sold 324 apartments for NIS 549 million, compared with 476 in the corresponding period. Annual revenues amounted to NIS 1.1 billion and operating profit to NIS 96 million. The gross profit doubled to about NIS 130 million and the profit amounted to NIS 43 million. Equity at the end of the period amounted to NIS 369 million, compared with NIS 281 million last year, when the increase was affected, among other things, by the issue of shares in the amount of NIS 44 million. The total capital for the company’s net CAP amounted to 28% at the end of 2020, an increase of about 15% compared to 24.4% at the end of 2019.

Realization of properties that are not at the core of the company’s business – During 2020, the company realized 3 properties that were completed and are not at the core of the business: in Pardes Hanna, at the Savyon junction in Kiryat Ono and at the corner of Sheinkin and Melchet streets in Tel Aviv. The sale of the assets contributed in 2020 to cash flow, a net of about NIS 50 million and a gross profit of about NIS 9.8 million.

The company also notes the reduction in leverage, with a repayment of NIS 227 million in bonds, and the raising of NIS 100 million in long-term bonds in favor of lowering financing costs and adjusting the repayment schedule for business progress.

In 2021, the company expects to start about 7 new projects that will include about 1,300 apartments (of which the company’s share is 964 apartments). In addition to these projects, Aura promotes licensing, lawsuits and tenant signatures in another 29 projects that will include about 16,000 apartments, of which the company’s share is about 12,000 apartments. Aura owns projects and land reserves amounting to 20,000 housing units. In a performance that has not yet been recognized in the amount of NIS 557 million, at the end of 2020 the company had NIS 110 million in cash.

“The focus on urban renewal has created many projects for the company, ranging from planning, execution, marketing to final occupancy. Therefore, in the face of a very low supply of land available for construction on the market, which leads to rising market prices, Laura has a huge and growing project, especially in demand areas. “Exactly adapted to the tough demand that the Israeli market is experiencing and will experience in the coming years,” he said Yaakov Atrakchi, CEO of Aura.

“We believe that 2020, which was a record year for us, is the beginning of a series of years of growth with total revenues of billions of shekels and gross profit of hundreds of millions of shekels, in the short term. We estimate that as housing prices continue to rise, “.