Gazit Globe Q1 Profit Rises

Israel's group

reported a rise in its profit for the first quarter. The company's quarterly profit surged to 376 million shekels ($97 million), versus a year-ago profit of 157 million shekels. Its rental income climbed 24 percent to 1.5 billion shekels, while net operating income surged 26 percent to 1.03 billions shekels (US$ 258 million). Funds from operation rose 6 percent to 160 million (US$ 40 million), or NIS 0.90 per share (US$ 0.23), versus NIS 151 million (US$ 38 million), or NIS 0.86 per share (US$ 0.22) in the year-earlier period. Investments totaled NIS 861 million (US$ 216 million) during the quarter. As of March 31, 2015, occupancy rate was 95.6 percent, versus 95.3 percent as of March 31, 2014. The company also announced its plans to pay a dividend of 0.46 shekel per share for the first quarter. Roni Soffer, President of Gazit-Globe: "We are pleased to conclude a strong quarter in which we experienced continued growth in our activities. Recently, we announced a major, strategic transaction in which Citycon will acquire Norway's second-largest shopping center company for EUR 1.47 billion. Citycon will become the largest publicly-listed shopping center company in the Nordic region and the third largest in continental Europe. This strategic transaction alongside the constant upgrading of the Company's portfolio around the world, has positioned the Group well for continued long-term growth." Gazit Globe reported that its President Roni Soffer would resign at the end of the year. Gazit Globe shares closed at $12.55 on Friday.