Good things happen When you own good real estate Investor Presentation 20 November, 2017 G Zameret, Tel Aviv, Israel
Who are we? Global Presence (1) Global owner, developer, and operator of supermarket-anchored shopping centers and retail-based, mixed-use properties located in urban growth markets Experienced and highly aligned management team with proven track record of creating value in retail properties Global footprint offers opportunity and diversification that is difficult to replicate 130 consolidated properties, 2.7 million Sqm. of GLA (2) with a total assets value of NIS 37.5 billion Largest shareholder in First Capital Realty Inc. Israel 12% USA 18% Brazil 10% Canada 20% Nordics 18% CEE 22% Major Shareholder in Regency Centers Corporation Listed on the NYSE, TSX, TASE under the symbol GZT and is included in the TA-35 in Israel. FCR REG CTY ATR Israel Brazil 2 NIS/USD exchange rate as of September 30, 2017 = 3.529 (1) Based on investment value as presented in Gazit financial statements as of September 30 2017. (2) As of September 30, 2017, Including consolidated subsidiaries.
Current business structure Invest through public and private subsidiaries Not consolidated Publicly Listed Subsidiaries Consolidated Private Subsidiaries Regency Centers First Capital Citycon Atrium Gazit Brasil Gazit Israel Gazit Horizons Region U.S. Canada Current Ownership Total Assets (Q3 2017) Sweden, Finland, Norway, Estonia and Denmark Central & Eastern Europe Sao Paulo, Brazil Israel U.S. 10.9% 32.6% 44.4% 59.5% 100.0% 100.0% 100.0% $14 billion C$ 9.9 billion Euro 4.86 billion Euro 3.1 billion BRL 2 billion NIS 3.3 billion NIS 360 million GLA (sqm.) 5.5 million 2.2 million 1.2 million 1.1 million 140,000 176,000 12,500 3
Investment opportunity Rare opportunity to invest in a global, high-quality urban retail portfolio at a meaningful discount to NAV Clear strategy to narrow NAV discount and drive superior risk-adjusted returns A strong and aligned management team with proven track record of creating and maximizing shareholder value Strong internal growth from capital recycling, property intensification, development, and redevelopment activities 4 Top Center, Sao Paulo, Brazil
Equity book value vs. market value and implied cap Holdings (Shares in millions, September 2017) Holding Rate (%) Book value (September 2017) Market Value (November 19, 2017) 18.5 10.9 4,046 4,378 Share Price (November 19,2017) 34.07 79.6 32.6 4,731 4,626 Number of shares (millions) 193.46 390.6 43.9 4,101 3,449 Market Cap 6,591 224.7 59.6 4,560 3,837 Net Debt (Proportionate share) 22,420 100 2,756 2,756 Properties under Development and Land )1,382( 100 2,216 2,112 Europe and Others 100 554 555 Total Assets 22,964 21,713 Net Debt 12,325 Equity (ignoring deferred taxes*) 10,369 Equity per share 53.26 LTV 53.8% Less Regency Shares )4,046( EV - Total Income Producing Properties 23,583 Annual NOI - Group's proportionate share 1,664 Implied CAP 7.05% 5 (*) Excludes deferred tax liabilities in an amount of NIS 1.3 billion (of which NIS 0.9 billion with respect to the investment in REG shares payable upon the immediate realization of all the REG shares, based on the tax rates as of the Reporting Date)..
Historical market valuation Share Price & NAV Performance (1) NIS68 NIS58 NIS48 NIS38 NIS28 NIS18 EPRA NAV PS Share Price NIS8 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 30% 15% - (15%) (30%) (45%) (60%) Discount to NAV Average: (19.4%) Current: (39.6%) Significant discount to NAV provides attractive long-term investment opportunity 6 (1) Share price quoted on the TASE and EPRA NAV presented according to the European Public Real Estate Association ( EPRA ) method, Data as of November 19, 2017
Attractive valuation FFO multiple of x9.55, implied cap of 7.05% FFO Multiple Implied Cap Rate 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 7.28% 7.30% 15.8x 18.9x 7.55% 7.42% 7.10% 7.10% 7.09% 7.19% 7.00% 6.84% 6.75% 6.96% 7.05% 6.58% 6.52% 16.7x 14.6x 13.4x 13.8x 14.0x 14.2x 15.2x 14.1x 12.7x12.5x 12.4x 13.1x12.5x 13.5x 13.7x 12.4x 12.4x 13.0x 11.9x 11.8x 11.0x 11.0x 10.6x 9.8x 10.3x 9.6x 30x 25x 20x 15x 10x 5x 0x 7 (*) Based on publicly reported proportionate NOI and FFO. FFO Guidance multiple is based on economic FFO guidance published at November 19, 2017.
Major development & redevelopment projects Promenada Warsaw, Poland Atrium Promenada is a prime fashion- and leisure- oriented shopping centre situated in one of Warsaw's most affluent and dynamic neighborhoods in the northeastern Praga Poludnie district. GLA of ~55,400 Sqm. Major extension of 44,000 Sqm GLA, total investment of 100m Anchored by Cinema City, Alma, H&M, GoSport, and Pure Status: Stage 1 completed: 7,600 m² GLA added/ Stage 2 ongoing: will add 13,400 m² GLA Iso Omena Helsinki, Finland Iso Omena is located in the strongly developing neighborhood of Matinkylä, Espoo (Helsinki Metropolitan Area). Iso Omena s catchment area is one of the fastest growing in Finland, with an exceptionally high average household income. GLA from 60,000 to 101,000 Sqm (Extension of ~37,700 Sqm). Great access - Metro station connection and bus terminal 5 minutes driving from 27,000 customers with 850m purchasing power. Anchored by Prisma, K-Citymarket, Zara, Clas Ohlson, H&M, Finnkino, Alko Status: Completed on April 2017, 270m investment, 98% leased. 8
Business strategy Create value by owning the best necessitybased retail in major global urban markets, with a strategy to increase direct and on balance sheet Invest in top-tier, necessity-driven shopping centres in major urban markets Identifying assets and redevelopment opportunities with cash flow growth and value appreciation Simplify corporate structure and increase direct ownership of real estate 31/12/2015 81% 30/9/2017 76% Extra Itaim, Sao Paulo, Brazil Improve credit matrices/ratings and further diversify funding sources Gazit-Globe s % of Asset Value Represented by Public Investments Benefits of increasing direct and on balance sheet investments include: Stronger balance sheet Lower cost of debt 9
Recycle capital and enhancing portfolio quality since 2010 What Are We Selling? Non-Core Properties Properties in second-tier cities Properties with lower growth potential What Are We Investing in? Core properties Sales Dominant properties centrally located in large cities with rental growth opportunities Property sales totaling NIS 14.5 billion Investments Lippulaiva, Helsinki, Finland Investments of NIS 49.1 (1) billion in acquisitions and development Development and redevelopment of existing prime properties 2010 Q3/2017 10 (1) Excluding Regency
Latest acquisitions Brickell Gateway, Miami First Acquisition of Gazit Horizons 401 East 60 th, Manhattan, New York First Acquisition of Gazit Horizons in New York Market In October 2017 Gazit Horizons acquired its first asset in the New York market, a three-level, 92,000-square-foot retail condominium on Manhattan s upper east side, for $73.25 million. The property, located at East 60th Street along First Avenue, is 100% occupied by two tenants, Bed Bath & Beyond and Starbucks Coffee and is situated one block north of the Queensborough Bridge, with both tenants having access and visibility along First Avenue. In July 2017, Gazit Horizons acquired Brickell Gateway, a 45,000 square foot building in Miami, Florida, United States. Located in the growing Brickell neighborhood of Miami, the property has excellent access and visibility to both pedestrian traffic and public transportation. Gazit Horizons intends to redevelop and expand the building to meet the demand of the area s numerous retail, restaurant and office tenants. This property was the first asset acquired by Gazit Horizons and is consistent with the Company s intended strategy to buy and redevelop properties with irreplaceable locations in major urban markets. 11
Increasingly focused on larger assets in urban & affluent neighborhoods Yorkville Village Toronto, Canada Yorkville Village assets located in the heart of Canada s most exclusive shopping districts More than $600 million invested in the complex GLA of ~35,000 Sqm with over 400 underground parking spaces, Close proximity to subways, museums and university, best demographics in Toronto Major tenants: Whole Foods, Equinox Fitness, Chanel and Jimmy Choo Kista Galleria Stockholm, Sweden Kista Galleria is one of Sweden s largest and most successful shopping centres, boasting about 19 million visitors annually. Kista Galleria enjoys a central location with metro station and bus terminal connected to the shopping centre Located in Kista Science City area - Sweden s largest business park, with 65,000 employees working for around 8,500 companies. 35,000 people live within a five-minute walk GLA of ~92,500 Sqm. Anchored by H&M, JD Sports, Next, Åhlens, SF Bio, ICA, Coop, Systembolaget, O Learys, library, healthcare centre, SATS Larger Better Assets 12
In Affluent Areas With Strong Population Demographics G City Rishon Lezion, Israel G City is the biggest and newest world of cinema, entertainment and shopping in Israel, with GLA of ~80,000 Sqm over 1Km shopping strip G City offers an exciting offering of entertainment and shopping; a great selection of stylish stores, top brand concept stores, large fitness and sports, restaurants, bars, cafes, food stands, and much more. Decathlon opened its flagship store in Israel on August 2017 Anchored by Cinema City, Shufersal, Rami Levi, Super Pharm, Zeus Gym &Spa, Shilav, FOX home, Urbanica, Moses and Toys R Us. Before After Top Center Sao Paulo, Brazil Located on Paulista Avenue, the main business centre in Brazil Daily foot traffic greater than 1.5 million with population of over 1.0 million living within a five kilometer radius Average household income 2x Sao Paulo average International tenants Forever 21, MAC, Starbucks Decathlon to open its flagship store in Brazil 13
Best in class properties & high quality tenants Subsidiary Westbury Plaza, NY Key Properties Potrero, San Francisco Top Tenants Occupancy (%) Q3 '17 95.3% Q4 '16 95.8% Yorkville Village, Toronto One Bloor, Toronto Q3 '17 95.3% Q4 '16 95.0% Kista Galleria, Stockholm Iso Omena, Helsinki Q3 '17 96.2% Q4 '16 96.2% Promenada, Warsaw Palac Flora, Prague Q3 '17 95.4% Q4 '16 96.6% G City, Rishon G Tzameret, Tel Aviv Q3 '17 96.8% Q4 '16 96.5% Morumbi Town, Sao Paulo Top Center, Sao Paulo Q3 '17 94.1% Q4 '16 92.6% 14
Convenience / Necessity focus mix North American portfolio is well diversified, service oriented with defensive asset class Resistant to store rationalization including E- Commerce Regency Centers ~75% of tenant base is E- commerce resistant - restaurants, service oriented and necessity based Announced 2017 store closures represents only 21 stores in Regency portfolio of over 9,000 tenants, with 95% successful re-leased or in negotiations in the last 18 months Q3 2017 Same Property NOI 5.0%, Releasing Spread of 7.8% 20% 30% 5% 20% 25% Resturants Necessity based (Grocers) Service oreiented 3080Yonge Street Toronto, Canada First Capital Realty 34% of FCR s portfolio is e-commerce proof (restaurants, MOBs, gyms, daycare, etc.) Expansions announced by FCR s top tenants Loblaws, Dollarama and more Q3 2017 Same Property NOI of 3.1%, Releasing Spread of 3.2% 4% 9% 14% 9% 3% 15% 18% 9% 18% Resturants Grocery Stores Pharmacies Other Necessity based Medical & Professional Services Liquor Stores 15 Source: Regency s and FCR s corporate presentations as of September 2017.
Focus on stable and strong markets Country Snapshot and NOI Diversification Country S&P Rating % of NOI (1) GDP Growth Canada AAA 21.1% 3.0% Norway AAA 7.3% 1.9% Sweden AAA 5.1% 3.0% Germany AAA 0.8% 1.1% U.S. AA+ 15.6% 2.2% Finland AA+ 8.3% 2.5% AA+ and Above 58.2% AA+ and Above Other Investment-Grade Below Investment-Grade Other Liljeholmstorget, Stockholm, Sweden Estonia AA- 2.4% 3.2% Czech Republic AA- 3.5% 3.5% Slovakia A+ 1.3% 3.3% Israel A+ 7.7% 3.2% 1.8% 58.2% Poland BBB+ 12.1% 4.1% Other Investment Grade 27.1% 12.9% Russia BB+ 5.7% 1.9% Brazil BB 7.2% 0.7% Below Investment Grade 12.9% 27.1% (less than 1%) Other 1.8% 16 Source: Bloomberg ; GDP reflects 2017 forecast (1) NOI as of Q3/2017 and on a proportionate basis
Investment grade credit rating group wide Agency S&P Maalot (Local Rating) Midroog )Moody s( (Local Rating) Moody s S&P DBRS Moody s S&P Moody s S&P Fitch Credit Rating ilaa- Stable Aa3 Stable Baa2 Stable BBB+ Stable BBB (High) Stable Baa2 Stable BBB Stable Baa1 Negative BBB- Stable BBB- Stable 17
Corporate activity last 15 months Q2 Q4/2016 Sale of BR Malls shares reflecting NIS 125 million gain Q4/2016 Extended and Increased LOC with Citibank by $150 million to $360 million Acquired the remaining 15% stake in Gazit Israel z Q1/2017 - Completed the merger transaction of EQY with REG Sold shares of REG and FCR for total proceeds of NIS 1.2 billion Q1/2017 Upsized Barclays facility by $50M USD to 125M USD Closed revolving LOC with TD bank, C$205 million Q2/2017 Completed diversifying bank debt LOC 50% international 50% local 18 Iso Omena, Helsinki, Finland
Corporate activity last 15 months Q3/2017 Investment in public subsidiaries and self repurchase: Citycon - On October and November 2017 bought approx. 4.4 million shares for approx. Euro 9.3 million Repurchase of Gazit Globe shares bought approx. 885 thousands shares for approx. NIS 30.6 million. On October bought approx. 1.2 million shares for approx. NIS 40.9 million Atrium bought approx. 413 thousands shares for approx. Euro 1.64 million. On October bought approx. 61 thousands shares for approx. Euro 242 thousands. REG 1-9/2017 results were positive - Core FFO 3 rd quarter of $0.95, FFO guidance on annually level increased to $3.66-3.70 p.s (previous quarter $3.62-3.68) 19 G Horev, Haifa, Israel
June 2016 - September 2017 real estate investments highlights public subs Canada - FCR First phase of Yorkville Village in Toronto (14,400 sqm.) was opened with an occupancy of 98% o The second phase (5,100 sqm.) is expected to attract hi-end international brands including Chanel Acquired One Bloor for approximately C$190 million King high line, Toronto ground up development of 22,110 sqm (FCR s share 50%) Yonge Street, Toronto major redevelopment of 22,760 sqm Total investment in acquisitions and development in 2017: CAD 182 million Northern Europe - CTY First phase of the expansion of Iso Omena, located in Helsinki, Finland, was opened in August 2016 o 2 nd phase completed development on April 2017, and now is one of the largest shopping centers in Finland, ~101,000 sqm. of GLA, 98% leased. Acquired the adjacent office building to Oasen shopping centre in Bergen, Norway for approximately Euro 78 million 1-9/2017 - Divestment of 7 none core properties and residential building rights for approx. Euro 140 million After September 2017 - Additional committed divestments include 5 shopping centres in Finland and 1 in Norway for approx. Euro 190 million Total investment in acquisitions and development in 2017 : Euro 202 million 20 One Bloor East, Toronto, Canada
June 2016 - September 2017 real estate investments highlights public subs Central Europe - ATR Commenced three redevelopment projects in Poland Promenada in Warsaw - Opened first phase of the extension ~7,600 sqm. Second phase is ongoing and will add ~13,400 sqm of GLA with an investment of approx. Euro 60 million Targowek in Warsaw - preliminary stage of 8,600 m² GLA extension is ongoing. Reduta in Warsaw In July 2017 commenced redevelopment adding 2,700 sqm of new Cinema, 1,700 sqm of fitness and 11 food court units Total investment in acquisitions and development in 2017: Euro 42 million 21 Palac Pardubice, Pardubice, Czech
June 2016 - September 2017 real estate investments highlights Private subs Brazil Completed Morumbi Town in Sao Paulo with 97% signed leases on opening day/ Gazit classic o Consists of approximately 30,000 sqm. of GLA and is well located in catchment area with a population of approximately 970,000 people within a 5 kilometer radius and traffic count of 50,000 vehicles passing daily by the property Purchased 33% interest in Shopping Cidade Jardim in Sao Paulo, Brazil, for approx. US$130 million o One of the highest quality malls in the country, comprising ~200 stores (including Chanel, Prada, Louis Vuitton, a fitness club, cinemas and high-end restaurants), with a total GLA of approx. 39,000 sqm, 1,170 parking spaces. Occupancy rate is 97% Completed the acquisition in Top Center complex on Paulista Avenue by purchasing the office building and parking garage located above and below the shopping center for $47 million Acquired the remaining 30% stake in Extra Itaim for US$31.5 million and now we hold 100%. Extra Itaim is a prime urban real estate asset located in the new financial center of Sao Paulo, with approx. 1M inhabitants within a 5 kilometer radius, in one of the most desirable and populated locations in Sao Paulo. o The Itaim neighborhood is one of the best and wealthiest residential regions in the city, known for its cluster of triple A office buildings with multinationals such as Bloomberg, Goldman Sachs, Google, Facebook and Credit Suisse 22 San Pelegrino, Sao Paulo, Brazil
June 2016 - September 2017 real estate investments highlights public subs Israel Commenced construction of G-Fashion (GLA of 13,250 sqm), an expansion to G City Asset to bring it to a total of 80,000 sqm Acquired a shadow supermarket in one of its shopping centers and signed an agreement to sale land plot Major renovation and upgrade at the Horev Center in Haifa and in G Tel Baruch in Tel Aviv substantially completed in 2 nd quarter Commenced repositioning and expanding of the western side of G- City. Decathlon opened its flagship store in Israel on August 2017 Acquisition of Kochav Hazafon Shopping centers for NIS 105 million Sell of its 26% stake in Bay Heart ltd. holding Cinemall in Haifa for NIS 61 million on September 2017 USA Formed a new subsidiary company, Gazit Horizons, Inc., to invest in income producing real estate throughout the United States o The new company, with offices in Miami and New York City, will seek to acquire assets in targeted markets throughout the country, with a focus on major metro markets and the growing urban cores of certain gateway cities. The company intends to invest in larger properties with mixed-use potential and will look for unique opportunities to uncover value through diversity of use as well as redevelopment and proactive asset management o Gazit has named Jeffrey Mooallem as President and Chief Executive Officer of Gazit Horizons. A 19-year veteran of the real estate industry, Mr. Mooallem most recently was a Managing Director at Federal Realty Investment Trust (NYSE: FRT); and prior to that held executive positions at Equity One, Inc. (NYSE: EQY) and privately held Turnberry Associates in Miami, FL. o First acquisition of Gazit Horizons Brickell Avenue, Miami o Second acquisition of Gazit Horizons in Manhattan s upper east side, for $73.25 million. 23 G Kfar Saba, Kfar Saba, Israel
Transaction of the year - EQY/REG merger Equity One merged with Regency Centers, creating the largest high-quality supermarket anchored REIT in the U.S. with a combined EV of ~$15.6 billion Gazit Globe s U.S. subsidiary, Equity One (NYSE: EQY), merged with Regency Centers creating the largest high-quality supermarket anchored REIT in the US with an aggregate market capitalization of $11.5 billion and an enterprise value of approx. $15.6 billion Combined entity will have a more attractive cost of capital and the merger will strengthen Regency s position vis-à-vis its tenants, as well as with regard to its leasing activities and asset management Savings in corporate expenses and cost synergies are expected to exceed ~$27 million annually The merged company comprises of ~5.3 million square meters of GLA, and is included in the S&P 500 Standalone At Closing Date Gazit Holdings Rate 36.5% 13.2% Gazit s proportionate FFO NIS 263 million NIS 282 million G&A savings in Gazit HQ - NIS 6 million Economic FFO NIS 263 million NIS 288 million Credit Rating Baa2 / BBB BBB+ / BBB+ / Baa2 Post Transaction Less Risk and Higher Cash Flow and Liquidity 24
Investments of Gazit Globe in 2008 & 2009 In 2008 and 2009 Gazit Globe Opportunistically Invested NIS 13.5 Billion of Capital at Historically Attractive Rates of Return Gazit Globe Direct Investments NIS 3.0 billion NIS 1.1 billion NIS 0.6 billion NIS 0.5 billion NIS 0.3 billion Public Subs Investments NIS 2.0 billion NIS 1.5 billion NIS 1.2 billion NIS 0.8 billion Bond Buybacks >NIS 200 million Bond Buybacks NIS 2.3 billion Total: NIS 5.7 Billion Total: NIS 7.8 Billion 25
Consolidated financial leverage Net Debt to Assets 70% 60% 64.9% 63.7% 60.7% Arkady Pankrac, Prague, Czech 50% 53.9% 55.8% 58.0% 56.1% 55.1% 51.0% 51.3% 50.1% 53.6% 40% 30% 20% 10% 0% Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Sep-17 26
FFO and FFO per share Economic FFO (*) NIS Millions Economic FFO (*) Per Share 688-700 533 585 598 627 586 3.53-3.59 359 405 9M YTD - 535 2.54 2.62 3.23 3.41 3.39 3.51 3.00 9M YTD 2.74 27 (*) See note 2.2 in the Directors report as of 30/9/2017..
Liquidity and financial strength Liquidity (1) Leverage NIS billions Consolidated Expanded Solo 7.0 3.8 3.2 Consolidated subsidiaries The company and its private subsidiaries 50.1% 53.6% 62.0% 53.9% 30/09/2017 31/12/2016 30/09/2017 31/12/2016 30/09/2017 Lines of Credit USD billions 1.3 61% 39% 1.4 48% 52% Unencumbered Pool of Assets (2) NIS billions Consolidated 86.0% 31/12/2016 30/09/2017 30/09/2017 International banks Local banks 28 (1) Cash and Unutilized credit facilities. Not including liquidity in FCR amounting to NIS 1.8B (2) % of Unencumbered pool of assets from investment asset in consolidated subs (i.e. not including assets FCR and REG)
Well staggered debt maturity schedule Expanded Solo Debenture Maturity Schedule (1) 3,000.0 NIS Millions 2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0 2.6% 289 11.8% 1,291 13.8% 1,511 (*) 10.8% 1,179 9.1% 8.0% 996 874 9.6% 1,050 11.0% 1,202 4.5% 8.6% 490 945 10.2% 1,123 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 and After 1.14% 5.16% 5.76% 5.11% 5.10% 5.19% 4.79% 4.68% 4.05% 3.98% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% Bonds % of Debentures Weighted Avg. Interest Rate Weighted average debt maturity: 4.6 years Average interest rate: 4.82% (*) Repayments in 2019 include Series 10 principal of NIS 759m with coupon of 6.5% which is secured by part of G City in Rishon Lezion, Israel. 29 (1) As of 30 September 2017. Comprises financial liabilities at the Gazit-Globe parent level and its private subsidiaries.
G Kfar Saba Kfar Saba, Israel Appendix 30
Evolution of Gazit Globe Equity One is founded in the US Gazit-Globe enters into Canada Equity One lists on the NYSE Equity One acquires IRT adding 92 incomeproducing properties to its portfolio Establishes a presence in Brazil through Gazit-Globe Brasil Expands into CEE through the acquisition of Atrium together with CPI Successful divestment of ProMed Properties Gazit-Globe Acquires Norway s Sektor through its subsidiary, Citycon, for 1.47bn Gazit-Globe Launches U.S. Investment Subsidiary Gazit Horizons 1992 1997 1998 2000 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2015 2016 2017 Gazit-Globe become the controlling shareholder of First Capital Realty Gazit-Globe enters the healthcare business and forms Royal Senior Care Gazit-Globe becomes the controlling shareholder of Citycon Gazit-Globe establishes Gazit-Globe Israel (Development) Citycon expands to Sweden, Estonia and Lithuania. Gazit- Globe establishes ProMed Gazit-Globe IPO in the US Successful divestment of Royal Senior Care Gazit-Globe becomes the sole controlling shareholder of Atrium Equity One merger with Regency Centers 31
Management DORI SEGAL CEO and Vice Chairman ADI JEMINI EVP and CFO RAMI VAISENBERGER VP & Controller CEO and Vice Chairman, Gazit-Globe Chairman, First Capital Realty (President and CEO 2000 2015) Previously CEO of Gazit-Globe (1998 to 2008) and Vice Chairman, Equity One, and Citycon Joined Gazit-Globe in 1993 as principal investor and senior member of management team Played a key role expanding Gazit- Globe Globe to Canada. Chief Financial Officer since Jan. 2016 Joined the Group in 2010 Previously Chief of Staff to Chaim Katzman and Regional Controller of Equity One Seven years in US affiliate of global accounting firm, Deloitte Bachelor of Science in Accounting and Information Systems (Virginia Tech), graduating Summa Cum Laude (2003) Certified Public Accountant Financial Controller, since July 2004 Leads Controlling and Reporting department Previously auditor, Ernst & Young (2000 2004) Bachelor s Degree in Business Management, College of Management, Tel-Aviv Certified Public Accountant 32
International and independent board CHAIM KATZMAN Chairman Founder, controlling shareholder and Chairman, Gazit-Globe (Chairman since 1998) Chairman, Norstar, controlling shareholder of Gazit-Globe (Chairman since 1991) Chairman of Citycon Oyj (since 2010) Chairman and founder of Equity One (CEO 1992 to 2006) Director, First Capital Realty (Chairman until 2015) Chairman, Atrium European Real Estate (since 2008) Vice Chairman Regency Centers Pioneer of retail investment and development industry, member of International Council of Shopping Centers (ICSC), the National Association of Real Estate Investment Trusts (NAREIT), the Real Estate Roundtable and the Association of Foreign Investors in Real Estate (AFIRE) and a trustee of the Urban Land Institute Founder, Gazit-Globe Real Estate Institute at the Interdisciplinary Center (IDC), Graduate of Tel Aviv University Law School DORI SEGAL CEO and Vice Chairman Vice Chairman and CEO, Gazit-Globe Chairman, First Capital Realty (President and CEO 2000 2015) Previously Deputy Chairman of Citycon Previously CEO of Gazit-Globe (1998 to 2008) and Vice Chairman, Equity One (1998-2017) Joined Gazit-Globe in 1993 as principal investor and senior member of management team Over past 20 years has been active in acquisition, development and redevelopment of shopping centers in the company's main markets Played a key role expanding Gazit-Globe Globe to Canada, leading the acquisition of First Capital Realty in 2000 and its growth since Ronnie Bar-On External Director Haim Ben Dor Director Yair Orgler External Director Zehavit Cohen Director Douglas Sesler Director Various Israeli governmental positions (2003-2013) including Minister of Finance, Minister of the Interior, Minister of National Infrastructure, Minister of Science and Technology, Chairman of the State Control Committee, Chairman of the Foreign Affairs and Defense Committee, Member of the Knesset Corporate consultant in finance and investments. Degree in Accounting from College of Management, Jerusalem and auditors' certificate from Ministry of Justice (Israel) Former Chairman of the Board of the Tel-Aviv Stock Exchange. Previously director of Bank Hapoalim. Professor Emeritus of the Management Faculty at Tel Aviv University. B.S. in Industrial Engineering and Management from Technion; M.S. Engineering (USC) and Ph.D. in Management- (Carnegie-Mellon University) Mrs. Cohen is a managing partner and the Office Head of Apax Partners Israel. Mrs. Cohen lectures at the Wharton School and she holds a BA in Accounting from Duquesne University; an MBA from the University of Pittsburgh, and an MA from the Wharton School, University of Pennsylvania. Private real estate investor. Previous head of global real estate principal investments of Bank of America Merrill Lynch. From 2005 until December 2008, Mr. Sesler served as Managing Director and later as co-head of Real Estate Investment Banking, Merrill Lynch. B.A. in Government (Cornell) 33
Canada business overview Business Strategy Portfolio Metrics Asset Map Leading owner-operator and developer of grocery anchored shopping centres in Canada Total Assets (C$m) 9.9B Number of Assets 159 GLA (100%, m sqf) 25.2 Net LTV 43.3% 90% of revenues from tenants providing daily essential products and services Target specific urban markets with growing populations All properties managed by local management team Occupancy 95.3% FFO (C$m) (1) 281 Rating Moody s Baa2 Rating DBRS BBB (High) Holding Rate Gazit-Globe 32.7% BRITISH COLUMBIA ALBERTA 12 Gtr Edmonton Area 1 16 Gtr Calgary Area 19 Number of Assets Red Deer Gtr Vancouver Area 11 46 8 7 Gtr Ottawa Area Gtr Toronto Area Golden Horse Shoe London Area 2 QUEBEC Gtr Montreal Quebec City Area 32 5 Key Management % of Minimum Rent by Geography Key Tenants Others 18% Greater Edmonton 10% Greater Toronto 33% Adam Paul President & CEO Kay Brekken EVP & CFO Jordan Robins EVP & COO Gregory Menzies EVP Greater Vancouver 11% Greater Calgary 12% Greater Montreal 16% 34 Source: FCR filings and presentation as of September 2017. (1) Annualized based on YTD2017 FFO
Northern Europe/Nordics business overview Business Strategy Portfolio Metrics Asset Map Leading owner-operator and developer of urban, grocery-anchored shopping centres in the Nordic and Baltic regions In 2015 entered Norwegian market through the acquisition of Sektor Gruppen Target urban markets with growing populations All properties managed by local management team Total Assets ( b) 4.86 Number of Assets (1) 53 GLA (m sqm) (1) 1.24 Net LTV 47.5% Occupancy 96.2% FFO ( m) (1) 147-156 Rating Moody s Rating S&P Baa1 BBB Holding Rate Gazit-Globe 43.9% Number of Assets Sektor Acquisition Norway 20 Denmark 2 Sweden 9 2 Finland 20 Baltics Key Management Market Value by Geography Key Tenants Norway 32% Finland 36% Marcel Kokkeel CEO Eero Sihvonen EVP & CFO Jurn Hoeksema COO Sweden 24% Baltics & New Business 8% 35 Source: CTY filings and presentation. (1) Based on Q3/2017 EPRA earnings guidance, including Kista Galleria.
CEE business overview Business Strategy Portfolio Metrics Asset Map Leading owner-operator and developer of food anchored shopping centres Total Assets ( m) 3.1B Number of Assets 60 GLA (m sqm) 1.1 Russia 7 Opportunistic growth prospects offered by emerging markets Net LTV 30.3% Occupancy 95.5% FFO (Adj. EPRA Earnings) ( m) (1) 12 Poland All properties managed by local management team Rating S&P BBB - Rating Fitch BBB - Holding Rate Gazit-Globe 59.5% Cz. Rep 6 21 Number of Assets 22 1 Romania Slovakia 3 Hungary Key Management GLA by Geography Key Tenants Liad Barzilai Group CEO Ryan Lee Group CFO Rolf Rüdiger Dany Group COO Hungary Romania 2% 3% Russia 11% Slovakia 6% Czech Republic 20% Poland 58% 36 Source: Atrium website and filings as of June 2017 (1) H1 17 Annualized
Israel business overview Business Strategy Portfolio Metrics Asset Map Leading owner-operator and developer of urban, grocery-anchored shopping centers Entered the market in 2005 with first acquisition and has established 3rd largest portfolio in Israel Total Assets NIS 3.3B Number of Assets 9 GLA (100%,'000 sqm) 176 Occupancy 96.8% Holding Rate Gazit-Globe 100% Israel: Operating Assets (9 high quality operating assets in prime locations) G City Rishon LeZion Retail & Leisure sqm,600gla: 66 Fashion Under G construction Rishon LeZion Retail Northern Cluster Haifa Yokneam G Kfar Saba Kfar Saba Retail & Leisure GLA: 42,200 sqm G Yavne Yavne Retail GLA: 9,900 sqm GLA: 13,250 sqm Central Cluster Key Management G Rothschild Rishon LeZion Retail & Office GLA: 12,900 sqm Kfar Saba Rishon LeZion Yavne Tel Aviv JERUSALEM G 6 Yokneam Retail & Office GLA: 14,200 sqm G Tzameret Tel Aviv Retail & Office ISRAEL G Horev Haifa Retail & Office GLA: 7,700 sqm GLA: 9,800 sqm Yaron Eshel CEO Yoni Mihawy CFO G Tel Baruch Tel Aviv Retail & Office GLA: 6,300 sqm 37 (1) As of June 30, 2017
Gazit Brasil business overview Business Strategy Portfolio Metrics 6 Asset Map Entered Brazil market in 2008 and built a portfolio of nine assets Strategy to create a unique portfolio of shopping centers in the business capital of Latin America, Sao Paul, Brazil Total Assets BRL 2.2B Number of Assets 9 GLA ('000 sqm) 140 Occupancy 94.1% 1 2 Cidade Jardim Morumbi Town 192 tenants 39,000 sqm GLA: 33% ownership Extra Itaim 104 tenants Owned GLA: 30,000 sqm 7 Mais Shopping 3 8 Top Center 108 tenants Owned GLA: 20,020 sqm Prado Blvd 4 5 Shopping Light 135 tenants Owned GLA: 18,422 sqm 9 San Pelegrino Eldorado 427 tenants sqm GLA:75076, 4.3% ownership Holding Rate Gazit-Globe 100% 23 tenants Owned GLA: 18,260 sqm 250 tenants Owned GLA: 13,000 sqm 82 tenants Owned GLA: 9,430 sqm 89 tenants Owned GLA: 14,800 sqm Key Management 5 3 4 Mia Stark CEO Andres Andrade Chief Investment Officer Thiago Rodrigues Legal Manager 1 6 Office 3km 2 5km 7 7km Sao Paulo City Portfolio 38 (1) As of June 30, 2017
United States business overview Business Strategy Established Gazit Horizons as a wholly owned subsidiary in May 2017. Acquired first asset in Miami, Florida in July 2017, for $29.75 million USD. The property, Brickell Gateway, is 45,000 square feet and will be renovated and expanded. It is located at an important intersection in Miami s growing Brickell neighborhood, adjacent to shopping, office workers, pedestrian activity and public transportation. Acquired first asset in Manhattan, New York in October 2017, for $73.25 million USD. The property, located at East 60th Street along First Avenue, is 92,000 square feet, 100% occupied by two tenants, Bed Bath & Beyond and Starbucks Coffee and is situated one block north of the Queensborough Bridge, with both tenants having access and visibility along First Avenue. Gazit Horizons intends to acquire and redevelop large assets in irreplaceable locations in the country s major urban markets, including Miami and New York Key Management 401 East 60th, Manhattan, New York Jeff Mooallem CEO 39 (1) As of October 15, 2017
Disclaimer This presentation may include forward-looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues. Forward-looking statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other financial items. Forward-looking statements may also relate to our business strategy, goals and expectations concerning our market position, future operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and can be identified by the use of forward-looking terminology such as the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases. Any forward-looking information contained in this presentation is based, in addition to existing information of the company, on present company expectations and evaluations regarding future developments and trends and on the interaction of such developments and trends. Although we believe the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our business and operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current expectations and are not guarantees of future performance. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in this presentation depending on a variety of factors including those described in greater detail in our Periodical and Annual Reports, Registration Statement on Form F-1, Registration Statement on Form F-3, Annual Report on Form 20-F and in other information we file and furnish including, but not limited to, with the Israel Securities Authority, the U.S. Securities and Exchange Commission, and the Canadian Securities Administrators, including under the heading Risk Factors. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable securities laws, we undertake no obligation to update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this presentation. The information contained herein does not constitute a prospectus or other offering document, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Gazit-Globe Ltd. or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any action, contract, commitment or relating thereto or to the securities of Gazit-Globe Ltd. 40
Thank you Contact Information Adi Jemini EVP & CFO +972.3.6948000 Doron Lavi Segelson Head of Investor Relations dlavi@gazitgroup.com +972.3.6948037 41 G Tel Baruch, Tel Aviv, Israel