Financial Results Second Quarter & Six Months Ended in June 30, 2019

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Financial Results Second Quarter & Six Months Ended in June 30, 2019 GREAT THINGS HAPPEN WHEN FINANCIAL RESULTS YOU OWN GREAT REAL ESTATE SECOND QUARTER & SIX MONTHS ENDED IN JUNE 30, 2019 INTERNACIONAL SHOPPING| SÃO PAULO G -CITY| RISHON LEZION BRIDGE TOWER|NEW YORK G | KFAR SABA G - TZAMERET | TEL AVIV MARKETPLACE | BOSTON BRICKELL GATEWAY I MIAMI I FL CEASAR'S BAY BAZAAR I BROOKLYN I NEW YORK 1 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 or relating to any action, contract, commitment or to the securities of Gazit-Globe Ltd. GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE 2 SIX MONTHS ENDED JUNE 30, 2019 – MAIN RESULTS STRONG OPERATIONAL PERFORMANCE OF THE PORTFOLIO Same Property NOI growth in the period (excluding Russia) of 4.1% compared to H1/2018 NOI (proportionate) increased by 7.0% in the period 23.2% I NIS Million 4.1% 669 1.5% 1.3% 625 0.1% Northern Europe Central Eastern Europe* Brazil Israel TOTAL* H1/2018 H1/2019 * Same Property NOI in Central and Eastern Europe including Russia grew 0.5% and 3.7% on the Group Level. Operating Cash Flow Per Share in the period FFO Per Share in the period- Excluding Regency & FCR (Expanded Solo)* I NIS I NIS 1.77 1.71 0.17 0.55 1.06 0.93 1.54 1.22 H1/2018 H1/2019 H1/2018 H1/2019 * Before Special dividend from ATR. GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE 3 SIX MONTHS ENDED JUNE 30, 2019 – MAIN RESULTS Main Highlights Wholly Owned Subsidiaries . NOI for the private subsidiaries in the period increased by 28.1% to NIS 214 million compared to NIS 167 million. Average monthly base rent at June 30, 2019 increased by 25.4% and 2.8% in Brazil and Israel, respectively, compared to June 30,2018 . Same Property Sales in the period increased by 10.7% and 1.2% in Brazil and Israel, respectively. Same Property visitors in the period increased by 10.0% and 4.9% in Brazil and Israel, respectively. Average Monthly Base Rent Same Same NOI (NIS million) Per Sqm Property Property Sales Visitors Growth (6 Growth (6 Occupancy H1/2019 H1/2018 Change % 30/06/2019 30/06/2018 Change % months) months) Brazil 95.6% ₪ 100 ₪ 69 44.9% BRL 79.0 BRL 63.0 25.4% 10.7% 10.0% Israel 98.5% ₪ 85 ₪ 80 6.3% ₪ 110.0 ₪ 107.0 2.8% 1.2% 4.9% US 96.0% (1) ₪ 22 ₪ 10 120.0% NA NA NA NA NA Europe- Others NA ₪ 7 ₪ 8 - NA NA NA NA NA Total ₪ 214 ₪ 167 28.1% (1) Occupancy level in US excludes Brickell in Miami which will be demolished and includes Ceasar's Bay in New York which as of June 30, 2019 was 72.7% occupied, and as of the date of the reporting the vacant space has been leased, and the asset is 99% occupied, which increase the occupancy in US to 96%. GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE (2) The decrease in the NOI compared to the same period in 2018 is due to the sale of an asset in Germany. 4 ACQISITION OF ALL REMAINING MINORITY SHAREHOLDER INTERESTS IN SUBSIDIARY ATRIUM* ו מיליוני ש"ח Advantages to Gazit: ATRIUM PROMENADA I WARSAW, POLAND Increased ownership in a high-quality portfolio of assets which the Company is very familiar Approx. 85% of Atrium’s asset value is concentrated in two European countries undergoing healthy growth—Poland and the Czech Republic—and in which approx. 50% of the assets are concentrated in Warsaw and Prague, two major European cities; Acquisition of a platform with proven management expertise; Approximately 15% expected increase in Company’s FFO by NIS 86 million (NIS 0.46 per share) to NIS 671 million (NIS 3.60 per share)**. Acquisition of approximately 2.2 billion Euros of unencumbered Atrium assets. Growth in Gazit’s shareholders’ equity of NIS 308 million (NIS 1.71 per share) (*) On July 23, 2019 the Company announces an offer to acquire all of the issued shares it does not currently own of its publicly-traded Jersey Island subsidiary, Atrium. The transaction is expected to close at the start of January 2020 and is subject to approval of the Royal Courts of Jersey and the minority shareholders at a general meeting of the Company. The scheme will require approval by minority shareholders representing 75% of the votes cast at that meeting and who represent a majority in number of the shareholders that vote at such meeting. (**) Based on the Company’s FFO guidance for 2019. GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE 5 GAZITGLOBE BUSINESS PLAN IN PROGRESS INCREASING OUR PRIVATE INVESTMENT SHARE 80% 22% 61% 49% 39% #451 20% 51% 78% 2015 2018 (December 31) 30/6/2019 Pro Forma – 80% / 20% 61% / 39% Atrium Transaction* PUBLIC PRIVATE WHILE REDUCING LEVERAGE 451 63.2% 62.0% 53.4% 53.9% 47.1% 48.9% <50% MID 2015 2016 2017 2018 30/6/2019 Pro TERM Forma* TARGET GREAT THINGS HAPPEN WHEN (*) On July 23, 2019 the Company announces an offer to acquire all of the issued shares it does not currently own of its publicly-traded Jersey Island subsidiary, Atrium. The transaction is YOU OWN GREAT REAL ESTATE expected to close at the start of January 2020 and is subject to approval of the Royal Courts of Jersey and the minority shareholders at a general meeting of the Company. The scheme will require approval by minority shareholders representing 75% of the votes cast at that meeting and who represent a majority in number of the shareholders that vote at such meeting. 66 Two ongoing projects are expected to be completed in the fourth quarter of 2019 and to increase the Company's NOI by approx. NIS 22 million annually. Five developments and expansions projects in planning stages in a total investment of approx. NIS 925-980 million (Company's share) which will increase the NOI by approximately NIS 81-88 million annually (Company's share). Cost to Complete Investment at Expected Expected Annual Gross Leasable Expected (100%, NIS 30/6/2019 (NIS Annual NOI NOI, Gazit's Share Project Location Area (GLA, Sqm) Use Gazit's Share Completion million million) (NIS million) (NIS million) To be completed in 2019 G Kochav Hazafon (Form 4 was accepted) Tel Aviv, Israel 2,200 Retail 100% Q4/2019 12 102 7 7 G Fashion Rishon Lezion, Israel 13,265 Retail 100% Q4/2019 54 116 15 15 Total Project to be completed in 2019 15,465 218 22 22 Development Pipeline in Construction Water Factory - Decathlon store and head quarters (Construction Commercial & Kfar Saba, Israel 13,611 25.5% Q2/2021 164-174 13 12-14 3-3.5 started) Office Development Pipeline in Planning Stages G City - Office tower (zoning has been approved and detailed planning Commercial & submission is in process.
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