November 17, 2021

Electra Real Estate has had a crazy quarter: A jump of 280% in the net income

Further to the report on the expansion of Electra Real Estate's funds' activities, the Company is continuing to present growth in its financial statements as well: The net income for the period of the first nine months of 2021 has grown by approximately 227% to approximately NIS 262 million., the revenues in the third quarter jumped by a factor of four and reached approximately NIS 188 million and the Company intends to establish a fourth fund for investments in housing complexes in the United States.

Gil Rushinek (Photo: Oren Kahan)

This morning (Wednesday). Electra Real Estate, which is part of the Elco Group and which is managed by Gil Rushinek, published its financial results for the third quarter of 2021. The focus of attention is that Electra Real Estate's revenues increased sharply in the third quarter of 2021 to approximately NIS 187.5 million, as compared with approximately NIS 47.3 million in the comparative period in the previous year. The increase in revenues in the quarter derived primarily from an increase in revenues from success fees (promote) and from the Company's share of the adjustment of the fair value of residential property for rental in the United States.

Electra Real Estate's net income jumped by approximately 283% to approximately NIS 133.4 million in the third quarter of 2021 (approximately NIS 124.6 million of which is attributed to the shareholders) as compared with approximately NIS 34.8 million in the comparative period in the previous year (approximately NIS 29.6 million of which was attributed to the shareholders). It can be seen from the Company's balance sheet that Electra Real Estate's shareholder's equity is continuing to grow as of September 30, 2021 and amounts to approximately NIDS 660 million (approximately NIS 634 million of which is attributed to the shareholders), as compared with approximately NIS 421 million (approximately NIS 405 million of which was attributed to the shareholders) as of December 31, 2020.

The key points of the results for the first nine months of 2021

Electra Real Estate's revenues increased sharply to approximately NIS 412 million in the period, as compared with approximately NIS 109 million in the comparative period in the previous year. The increase in revenues in the quarter derived primarily from an increase in revenues from success fees (promote) and from the Company's share of the adjustment of the fair value of residential property for rental in the United States.

Electra Real Estate's net income climbed by approximately 227% to approximately NIS 261.9 million (approximately NIS 252.9 million of which is attributed to the shareholders) as compared with approximately NIS 80.24 million in the comparative period in the previous year (approximately NIS 73.3 million of which was attributed to the shareholders).

Funds investing in residential complexes in the United States

In 2017, Electra Real estate recruited approximately 2.3 billion dollars in the four investment funds, which invest in residential complexes in the United States, from Israeli investors, in addition to which it raised approximately 700 million dollars, primarily from bodies in the United States, in joint ventures. Overall, the Company raised approximately 3 billion dollars. As of the present time, the Company is managing equity amounting to approximately 2.7 billion dollars.

Rushinek explains: "We are finishing the third quarter with a significant increase in revenues and in net income. The main increase in the revenues is attributed to the success fees (promote) component, which expresses the Company's share as the General Partner (GP) in the funds' operations. We have updated a number of realizations of properties recently, with a high annual yield rate (IRR) of more than 25% at the level of the properties. At the beginning of the week, we provided an update regarding the establishment of new activity in the offices field in Great Britain, where we will be launching a 200 million Pound Sterling fund together with a local partner, with rich experience in the field. In the meanwhile, we are continuing with development of houses with attached land for rental (single family homes) as well as development in the hostelry field in which we identify considerable potential for creating value at present. We are managing the Company's activity and that of the funds whilst mapping and embedding environmental, social and corporate governance principles (ESG)."

"Electra Real Estate is one of the largest and the leading companies operating in the field of residential property for rental in the United States. The Company's properties portfolio, which is managed,  is continuing to grow and numbers approximately 32 thousand rental apartments, with an estimated value of more than NIS 19.5 billion. According to the Company’s work plan, we intend to continue to establish continuation funds for all of the Company's present activity and also to identify real estate assets with significant potential for enhancement, which are managed by a local partner with rich experience. All of this is with the objective of continuing to increase the value for the shareholders."

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