Earnings Press Release of Gazit-Globe for Quarter Ended March 31, 2016 On May 26, 2016, Gazit-Globe...

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0001213900-16-013828.txt : 201605260001213900-16-013828.hdr.sgml : 2016052620160526114507ACCESSION NUMBER:0001213900-16-013828CONFORMED SUBMISSION TYPE:6-KPUBLIC DOCUMENT COUNT:15CONFORMED PERIOD OF REPORT:20160526FILED AS OF DATE:20160526DATE AS OF CHANGE:20160526

FILER:

COMPANY DATA:COMPANY CONFORMED NAME:Gazit-Globe LtdCENTRAL INDEX KEY:0001379009STANDARD INDUSTRIAL CLASSIFICATION:REAL ESTATE [6500]IRS NUMBER:000000000STATE OF INCORPORATION:L3FISCAL YEAR END:1231

FILING VALUES:FORM TYPE:6-KSEC ACT:1934 ActSEC FILE NUMBER:001-35378FILM NUMBER:161676926

BUSINESS ADDRESS:STREET 1:1696 NE MIAMI GARDENS DRIVECITY:NORTH MIAMI BEACHSTATE:FLZIP:33179BUSINESS PHONE:(212) 305-944-7988

MAIL ADDRESS:STREET 1:1696 NE MIAMI GARDENS DRIVECITY:NORTH MIAMI BEACHSTATE:FLZIP:33179

6-K1f6k052616b_gazitglobe.htmREPORT OF FOREIGN PRIVATE ISSUER

UNITEDSTATES

SECURITIESAND EXCHANGE COMMISSION

Washington,D.C. 20549

FORM6-K

REPORTOF FOREIGN PRIVATE ISSUER

PURSUANTTO RULE 13a-16 OR 15d-16

UNDERTHE SECURITIES EXCHANGE ACT OF 1934

Forthe month of: May 2016

CommissionFile Number: 001-35378

Gazit-GlobeLtd.

(Translationof registrants name into English)

Stateof Israel

(Jurisdictionof incorporation or organization)

1Hashalom Road

Tel-Aviv,Israel 67892

(Addressof principal executive office)

Indicateby check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form20-F Form 40-F

Indicateby check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicateby check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

CONTENTS

EarningsPress Release of Gazit-Globe for Quarter Ended March 31, 2016

OnMay 26, 2016, Gazit-Globe Ltd. (Gazit or the Company) issued a press release reportingits financial results for the first quarter of 2016, ended March 31, 2016. That press release (an English version) is furnishedas Exhibit 99.1 to this Report of Foreign Private Issuer on Form 6-K (a Form 6-K).

ConferenceCall Presentation

Alsoon May 26, 2016, as reported in the Form 6-K that Gazit furnished to the Securities and Exchange Commission on May 23, 2016, Gazitssenior management is holding a conference call and live webcast to review and discuss (in English) the first quarter 2016 financialresults.

Theconference call and live webcast will begin at 17:00 Israel Time / 10:00 am Eastern Time. Shareholders, analysts and other interestedparties can access the conference call by dialing 1-877-280- 2342 (U.S./Canada), 0800 279 4992 (U.K.), +44 (0) 20 3427 1909 (International)or 1809 212 925 (Israel), or on the Companys website www.gazit-globe.com (Conference ID 5340496). After the completionof the conference call, you can also listen to a recording of it on the Companys website. The content of that website isnot a part of this Form 6-K, nor is it incorporated by reference herein.

Thepower-point presentation for that conference call is furnished as Exhibit 99.2 to this Form 6-K.

QuarterlyDividend Declaration

OnMay 25, 2016, Gazits Board of Directors approved a quarterly dividend distribution to the holders of the Companysordinary shares, in an amount of NIS 0.35 per share, and a total amount of approximately NIS 68.4 million, pursuant to the Companyscurrent dividend distribution policy. The dividend will be payable on June 16, 2016 to all shareholders of record of the Companysordinary shares as of June 8, 2016.

ForwardLooking Statements

ThisReport of Foreign Private Issuer on Form 6-K, including the exhibits hereto, may contain forward-looking statements within themeaning of applicable securities laws. In the United States, these statements are made pursuant to the safe harbor provisionsof the Private Securities Litigation Reform Act of 1995. Such statements involve a number of known and unknown risks and uncertainties,many of which are outside our control, that could cause our future results, performance or achievements to differ significantlyfrom the results, performance or achievements expressed or implied by such forward-looking statements. Important factors thatcould cause or contribute to such differences include risks detailed in our public filings with the U.S. Securities and ExchangeCommission and the Canadian Securities Administrators. Except as required by applicable law, we undertake no obligation to updateany forward-looking or other statements herein, whether as a result of new information, future events or otherwise.

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SIGNATURES

Pursuantto the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized.

Gazit-Globe Ltd.

Date: May 26, 2016 By:

/s/ Adi Jemini

Name: Adi Jemini

Title: Chief Financial Officer

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ExhibitIndex

Exhibit No. Description

99.1 Earnings press release of Gazit-Globe Ltd. for the quarter ended March 31, 2016

99.2 Conference call presentation for financial results of Gazit-Globe Ltd. for the quarter ended March 31, 2016

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EX-99.12f6k052616bex99i_gazit.htmEARNINGS PRESS RELEASE OF GAZIT-GLOBE LTD. FOR THE QUARTER ENDED MARCH 31, 2016

Exhibit 99.1

Gazit-Globe Ltd.

1 HaShalom Rd.

Tel Aviv, Israel 67892

+972 3 694 8000

For additional information:

Adi Jemini

CFO, Gazit-Globe

FORIMMEDIATE RELEASE:

Gazit-GlobeReports First Quarter 2016 Financial Results

TEL-AVIV,ISRAEL; May 26, 2016 Gazit-Globe (NYSE; TSX; TASE: GZT), one of the world's leading multi-national real estate companiesfocused on the management, acquisition, development and redevelopment of supermarket-anchored shopping centers in major urbanmarkets, announced today its financial results for the first quarter ended March 31, 2016.

Referencesto the Group relate to Gazit-Globes consolidated statements. References to the Company relateto Gazit-Globes stand-alone financial statements. Unless otherwise stated, financial information included in this pressrelease relates to the Group.

Highlights:

NOI for the quarter totaled NIS 1,052 million (US$ 279 million) compared to NIS 1,028 million (US$ 273 million) in the same quarter last year. Excluding the effect of exchange rate fluctuations NOI increased by 7.9% compared to the same quarter last year.

FFO for the quarter totaled NIS 135 million (US$ 36 million), or NIS 0.69 per share (US$ 0.18), compared to NIS 160 million (US$ 42 million), or NIS 0.90 per share (US$ 0.24), in the same quarter last year. The decrease in FFO and FFO per share between the two periods is mainly due to the effects of exchange rates, the sale of shares in subsidiaries and the equity offering that was completed at the end of 2015. Excluding the effect of foreign exchange rate fluctuations, FFO for the quarter decreased by 5.6% and FFO per share decreased by 14% compared to the same quarter last year.

Same Property NOI for the quarter, excluding the effect of foreign exchange rate fluctuations, increased by 0.3% (1.9% excluding Russia), compared to the same quarter last year.

The occupancy rate as of March 31, 2016 remained high at a level of 95.6%, the same as the occupancy as of March 31, 2015.

Investments during the quarter totaled NIS 997 million (US$ 265 million).

Shareholders' equity as of March 31, 2016 totaled NIS 7,378 million (US$ 1,959 million), or NIS 37.7 per share (US$ 10.0 per share), compared to NIS 7,512 million (US$ 1,995 million), or NIS 38.4 per share (US$ 10.2 per share), as of December 31, 2015 and after a dividend distribution of NIS 0.46 per share (US$ 0.12).

As of March 31, 2016, the Group had liquid assets and unutilized revolving credit facilities in the amount of NIS 10.4 billion (US$ 2.8 billion), of which NIS 3.1 billion (US$ 823 million) was at the Company level.

As of March 31, 2016, net debt to total assets (LTV) was 50.8%, compared to 51.3% as of December 31, 2015.

The Company will distribute a quarterly cash dividend of NIS 0.35 per share, payable on June 16, 2016 to shareholders of record as of June 08, 2016.

Exchange rate as of March 31, 2016 of 1 USD = 3.766 NIS

RachelLavine, CEO of Gazit-Globe: The improvement in the various operating parameters is primarily due to the capital recyclingactivity that began more than 6 years ago in our North American subsidiaries, Equity One and First Capital, as this has been reflectedmore strongly in recent quarters. We believe that the improvement process is similar to the capital recycling activity currentlyunder way in our subsidiaries in Europe, which have not yet been reflected in their results. Our operating results were significantlyoffset by the strengthening of the Shekel against the currencies of operations, coupled with the sale of shares in our North Americansubsidiaries earlier this year, in line with our strategy. We are committed to acting decisively and consistently as we createthe right infrastructure for the companys growth in the coming years. Recently, we announced an increase in our holdingsin Gazit Israel to 100% as we increase the Groups component of private real estate and simplify the holding structure.

Financialhighlights for first quarter 2016:

Rental income for the quarter totaled NIS 1,539 million compared to NIS 1,527 million in the same quarter last year. Excluding the effect of foreign exchange rate fluctuations, the rental income increased by 6.5% compared to the same quarter last year.

NOI for the quarter totaled NIS 1,052 million compared to NIS 1,028 million in the same quarter last year. Excluding the effect of foreign exchange rate fluctuations, NOI increased by 7.9% compared to the same quarter last year.

FFO for the quarter totaled NIS 135 million, or NIS 0.69 per share, compared to NIS 160 million, or NIS 0.90 per share, in the same quarter last year. The decrease in FFO and FFO per share between the two periods is mainly due to the effects of foreign exchange rates, the sale of shares of subsidiaries and equity offering that was completed at the end of 2015. Excluding the effect of foreign exchange rate fluctuations, FFO for the quarter decreased 5.6% and FFO per share decreased by 14%.

Occupancy rate as of March 31, 2016 remained high at 95.6%, the same as the occupancy as of March 31, 2015. By region, occupancy rates as of March 31, 2016 were: 96.2% in the US; 95.0% in Canada; 96.2% in North Europe; and 95.8% in Central and Eastern Europe.

EPRA NAV per share as of March 31, 2016 was NIS 52.4 compared to NIS 52.9 per share as of December 31, 2015.

Loss attributable to the Companys shareholders totaled NIS 278 million compared to a gain of NIS 376 million in the same quarter last year. The loss is mainly due to the revaluation of financial derivatives (NIS 302 million), the net loss from the sale of shares of Dori Group and the reduction in the value of the capital note (NIS 195 million).

The net fair value of investment property and investment property under development gain was NIS 249 million, compared to a gain of NIS 107 million in the same quarter last year.

Cash flow from operating activities totaled NIS 290 million, compared to NIS 175 million in the same quarter last year.

Acquisition,Development, Redevelopment and Capital Recycling Activities:

During the quarter, the Group invested NIS 997 million. Total investment included NIS 437 million invested in 4 income-producing property totaling 28 thousand square meters, as well as NIS 560 million in development and redevelopment projects.

As of March 31, 2016, the Group had 6 properties under development with a gross leasable area of 111 thousand square meters with a total investment of NIS 1.3 billion, and 21 properties under redevelopment with a gross leasable area of 232 thousand square meters with a total investment of NIS 4.4 billion. The additional cost to complete the properties under development and redevelopment totaled NIS 1.9 billion.

During the quarter Gazit Globe Israel sold all Dori Group shares owned and as a result of the sale, the Company realized a net loss of NIS 195 million.

Subsequent to the end of the quarter, the company announced that it is increasing its share in Gazit Israel (Development) to 100%, becoming the sole shareholder in the company.

FinancingActivities:

The average nominal annual cost of debt during the quarter was 4.1%, compared to 3.5% in the same quarter last year. The increase in nominal interest is mainly due to a decrease in the CPI that was 0.9% versus a decrease of 1.6% in the same quarter last year.

The Company will distribute a quarterly cash dividend of NIS 0.35 per share, payable on June 16, 2016 to shareholders of record as of June 08, 2016.

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ACCOUNTINGAND OTHER DISCLOSURES

TheCompany believes that publication of FFO, which is computed according to EPRA guidance, more correctly reflects the operatingresults of the Company, since the Companys financial statements are prepared in line with IFRS. In addition, publicationof FFO provides a better basis for the comparison of the Companys operating results in a particular period with those ofprevious periods and also provides a uniform financial measure for comparing the Companys operating results with thosepublished by other European property companies.

Inaddition, pursuant to the investment property guideline issued by the Israel Securities Authority in January 2011, FFO is to bepresented in the Description of the Companys Business section of the annual report of investment propertycompanies on the basis of the EPRA criteria.

Asclarified in the EPRA and NAREIT position papers, the EPRA Earnings and the FFO measures do not represent cash flows from operatingactivities according to accepted accounting principles, nor do they reflect the cash held by a company or its ability to distributethat cash, and they are not a substitute for the reported net income. Furthermore, it is clarified that these measures are notaudited by the Companys independent auditors.

CONFERENCECALL/WEB CAST INFORMATION

Gazit-Globewill host a conference call and webcast in English on Thursday, May 26, 2016 at 5:00 pm Israel Time / 4:00 pm Central EuropeanTime / 10:00 am Eastern Time, to review the first quarter 2016 financial results. Shareholders, analysts and other interestedparties can access the conference call by dialing 1877 280 1254 (U.S./Canada) or 0800 279 4992 (U.K.) or 44 (0) 20 3427 1908 (International)or 1 809 212 925 (Israel), or on the Companys website: www.gazit-globe.com (Conference ID 8905824)

Webcastlink: http://edge.media-server.com/m/p/4godqbnj

Forthose unable to participate during the call, a replay will be available for future review on Gazit-Globe's website under InvestorRelations.

AboutGazit-Globe

Gazit-Globeis one of the largest owners, developers and operators of predominantly supermarket-anchored shopping centers in major urban marketsaround the world. Gazit-Globe is listed on the New York Stock Exchange (NYSE: GZT), the Toronto Stock Exchange (TSX: GZT) andthe Tel Aviv Stock Exchange (TASE: GZT) and is included in the TA-25 and Real-Estate 15 indices in Israel. As of March 31, 2016Gazit-Globe owns and operates 439 properties in more than 20 countries, with a gross leasable area of approximately 6.5 millionsquare meters and a total value of approximately US$ 21.5 billion.

FORADDITIONAL INFORMATION

Acomprehensive copy of the Companys financial report is available on Gazit-Globe website at www.gazit-globe.com

InvestorsContact: [email protected], Media Contact: [email protected]

Gazit-GlobeHeadquarters, Tel-Aviv, Israel, Tel: +972 3 6948000

FORWARDLOOKING STATEMENTS

Thisrelease may contain forward-looking statements within the meaning of applicable securities laws. In the United States, these statementsare made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involvea number of known and unknown risks and uncertainties, many of which are outside our control, that could cause our future results,performance or achievements to differ significantly from the results, performance or achievements expressed or implied by suchforward-looking statements. Important factors that could cause or contribute to such differences include risks detailed in ourpublic filings with the SEC and the Canadian Securities Administrators. Except as required by applicable law, we undertake noobligation to update any forward-looking or other statements herein, whether as a result of new information, future events orotherwise.

Belowplease find excerpts from our Q1 2016 financial report. For our full Q1 2016 report in English, please go to http://www.gazitglobe.com/financial-reports.

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Thetable below presents the calculation of the Companys FFO, calculated according to the recommendations of EPRA and the guidelinesof the Israel Securities Authority, and its FFO per share for the stated periods:

For the year

For the 3 months ended
March 31, ended December31

2016 2015 2015

NIS in millions (other than per share data)

Net income (loss) attributable to equity holders of the Company for the period (278) 376 620

Adjustments:

Fair value gain from investment property and investment property under development, net (249) (107) (711)

Capital loss on sale of investment property (1) 5 106

Changes in the fair value of financial instruments, including derivatives, measured at fair value through profit or loss 526 (575) (693)

Adjustments with respect to equity-accounted investees (5) 12 (50)

Loss from disposal of investee - 1,533 1,533

Deferred taxes and current taxes with respect to disposal of properties 89 41 138

Gain from bargain purchase, net of goodwill amortization - (1,067) (1,026)

Acquisition costs recognized in profit or loss 1 1 41

Loss (gain) from early redemption of interest-bearing liabilities 29 (1) 78

Non-controlling interests' share in above adjustments 65 42 395

Nominal FFO (EPRA Earnings) 177 260 431

Additional adjustments:

CPI linkage differences (71) (142) (77)

Depreciation and amortization 4 5 21

Adjustments with respect to equity-accounted investees - (3) -

Other adjustments1 25 40 252

FFO according to the management approach (Adjusted EPRA Earnings) 135 160 627

FFO according to the management approach per share (basic and diluted) (in NIS) 0.69 0.90 3.51

Number of shares used in the basic FFO per share calculation (in thousands)2 195,476 178,414 178,426

Number of shares used in the diluted FFO per share calculation (in thousands)2 195,566 178,507 178,601

1 Income and expenses adjusted against the net income for the purpose of calculating FFO, which include the adjustment of expenses and income from extraordinary legal proceedings not related to the Reporting Periods (including a provision for legal proceedings), non0recurring expenses arising from the termination of engagements with senior Group officers, as well as income and expenses from operations not related to income-producing property (including the results of Dori Group in comparable periods) and the cost of debt with respect thereto, and non-recurring restructing expenses, and internal costs (mainly salary) incurred in the leasing of properties.

2 Weighted average for the period.

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GAZIT-GLOBE LTD.

CONDENSEDCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

March 31, December31,

2016 2015 2015

Unaudited Audited

NIS in millions

ASSETS

CURRENT ASSETS

Cash and cash equivalents 2,433 2,991 2,125

Short-term and loans 60 357 203

Marketable securities 42 45 38

Financial derivatives 50 128 77

Trade receivables 218 582 467

Other accounts receivable 401 389 363

Inventory of buildings and apartments for sale - 583 522

Income taxes receivable 27 22 24

3,231 5,097 3,819

Assets classified as held for sale 513 303 826

3,744 5,400 4,645

NON-CURRENT ASSETS

Equity-accounted investees 2,665 2,196 2,996

Other investments, loans and receivables 743 709 754

Available-for-sale financial assets 889 373 771

Financial derivatives 341 720 702

Investment property 71,799 65,951 70,606

Investment property under development 2,666 3,119 2,587

Fixed assets, net 128 201 170

Intangible assets, net 915 100 900

Deferred taxes 39 87 105

80,185 73,456 79,591

83,929 78,856 84,236

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GAZIT-GLOBE LTD.

CONDENSEDCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

March 31, December31,

2016 2015 2015

Unaudited Audited

NIS in millions

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Credit from banks and others 876 570 1,062

Current maturities of non-current liabilities 2,228 2,618 2,279

Financial derivatives 40 55 45

Trade payables 500 812 833

Other accounts payable 1,717 1,597 1,521

Advances from customers and buyers of apartments - 275 326

Income taxes payable 81 93 111

5,442 6,020 6,177

Liabilities attributed to assets held for sale 5 17 50

5,447 6,037 6,227

NON-CURRENT LIABILITIES

Debentures 29,043 27,931 29,480

Convertible debentures 603 1,162 921

Interest-bearing loans from banks and others 12,064 9,428 11,457

Financial derivatives 133 95 93

Other liabilities 392 450 402

Deferred taxes 4,707 4,331 4,661

46,942 43,397 47,014

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

Share capital 249 232 249

Share premium 4,985 4,413 4,983

Retained earnings 4,839 5,209 5,207

Foreign currency translation reserve (2,936) (2,162) (3,103)

Other reserves 262 171 197

Treasury shares (21) (21) (21)

7,378 7,842 7,512

Non-controlling interests 24,162 21,580 23,483

Total equity 31,540 29,422 30,995

83,929 78,856 84,236

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Three months ended

March 31,

Year ended

December31,

2016 2015 2015

Unaudited Audited

NIS in millions (except for per share data)

Rental income 1,539 1,527 6,150

Property operating expenses 487 499 1,966

Net operating rental income 1,052 1,028 4,184

Fair value gain from investment property and investment property under
development, net 249 107 711

General and administrative expenses (175) (170) (726)

Other income 9 4 31

Other expenses (18) (501) (795)

Company's share in earnings of equity-accounted investees, net 35 31 234

Operating income 1,152 499 3,639

Finance expenses (723) (309) (1,831)

Finance income 60 617 852

Income before taxes on income 489 807 2,660

Taxes on income 101 63 166

Net income from continuing operations 388 744 2,494

Loss from discontinued operation, net (230) (17) (188)

Net income 158 727 2,306

Attributable to:

Equity holders of the Company (278) 376 620

Non-controlling interests 436 351 1,686

158 727 2,306

Net earnings (loss) per share attributable to equity holders of the Company (NIS):

Basic net earnings (loss) from continuing operations (0.42) 2.15 4.05

Basic loss from discontinued operation (1.00) (0.04) (0.58)

Total basic net earnings (loss) (1.42) 2.11 3.47

Diluted net earnings (loss) from continuing operations (0.44) 2.15 4.02

Diluted loss from discontinued operation (1.00) (0.05) (0.57)

Total diluted net earnings (loss) (1.44) 2.10 3.45

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EX-99.23f6k052616bex99ii_gazit.htmCONFERENCE CALL PRESENTATION FOR FINANCIAL RESULTS OF GAZIT-GLOBE LTD. FOR THE QUARTER ENDED MARCH 31, 2016

Exhibit 99.2

GRAPHIC4image_001.jpgGRAPHIC

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