Yields Reit is trying to show a jump in FFO but the forward forecast – very weak – real estate

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Yield reit
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Base:180.2

opening:180.2

High:180.3

low:179.3

change:323,626

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Reports its financial statements for the fourth quarter of 2020 and for the entire year. In the fourth quarter, profit increased to NIS 19 million, compared with NIS 8.4 million in the fourth quarter of 2019, an increase of 126%. The NOI in the fourth quarter of 2020 amounted to NIS 27 million, compared to NOI in the amount of NIS 13.2 million in the fourth quarter of 2019 – a jump of about 100%.

The company also reports a 147% jump in FFO (net profit plus dividends from investments, depreciation and amortization) to NIS 74 million in 2020 compared to NIS 30.2 million in 2019, the NOI (net operating income) grew by 108 % In 2020 and amounted to NIS 103.7 million, compared with NIS 49.8 million in 2019.

But it must be honestly said that these numbers do not reflect anything, and the company’s forecasts for the coming year – do not predict growth. The jump in FFO and NOI is mainly due to the acquisition of buildings by the company: the completion of a blade deal that began generating revenue in January 2020, as well as the completion of a fresh deal, ie not its current operations and therefore nothing to teach about the future. In contrast, the forecasts do show.

The company’s forecasts ahead – very weak
The company expects that the NOI is expected to grow to NIS 106-108 million this year, an increase of about 3%. According to the company, the expected FFO in the 2021 reports will be about NIS 74-75 million – Same as the current year. The company also expects to distribute a dividend of NIS 50-55 million.

The company’s rental income at the end of 2020 amounted to NIS 112 million, a growth of about 92%, compared with income of NIS 58.2 million in 2019. The company’s income in the fourth quarter of the year amounted to NIS 29 million, compared to income of approx. NIS 15.1 million in the fourth quarter of 2019, an increase of about 92%.

Ofer Abram Managing CEO: “We end 2020 with an increase of about NIS 1 billion in the value of our assets, which amounted to about NIS 1.84 billion, and with growth in all operational parameters, mainly due to the completion of a blade deal and an increase in rents and occupancy. Towards the end of 2020 we received the new office tower To the Raanana-Kfar Saba junction and we even increased our share to 100%. The tower is one of the company’s significant assets, and is expected to be one of the main components in the company’s growth in the coming years. The company in the coming year. ”