The company, which manages residential assets in the USA, closed Q1/21 with a growth of 175% in revenue to NIS. 62.7 million, and a jump in net profit to NIS. 40.6 million. CEO Roshinek: “We recently entered the field of detached homes rental and are planning our entry into hoteling”
Hezi Sternlicht 11 May 2021
Electra Real Estate closed the first quarter of 2021 with strong growth in revenue and profit.
The company, which manages housing clusters in the USA, registered an increase of 175% in revenue to NIS. 62.7 million chiefly due to growth in revenues from promote fees and fair value adjustments for residential rent in the USA.
South Carolina: A housing cluster operated by Electra Real Estate
Net operating income (NOI) from fair value rentals derived from assets managed by Electra Real Estate rose by 13% to US$60 million. Using the parallel quarter last year as the point of comparison, the NOI for identical properties yielding revenues for the company in the reported quarter rose by 10% to US$55 million, indicating that the company increased prices on rental contracts.
Shareholders’ net profit showed a 170% spurt at NIS. 40.6 million. The American residential clusters market has shown solid yet consistent growth rates over the past few years, attracting worldwide investors.
In the past 3.5 years, Electra Real Estate has recruited some US$1.8 billion in four investment funds from Israeli investors for cluster residences in the USA. It further recruited some US$600 million primarily from American parties for joint deals in addition to the funds. In total, the company recruited some US$2.4 billon. Electra Real Estate share prices skyrocketed by 82.3% over the past 12 months, with the company’s market value prior to trading this morning standing at NIS. 2 billion.
As far as its activities in the field of residential clusters, Electra Real Estate draws on four sources of income: ongoing profits as a limited partner (LP); asset derived assessment gains as the LP; annual ongoing management fees as the general partner (GP); and promote fees resulting from the impact of profits from property assessment or realizations as the GP.
With publication of these figures, Gil Roshinek, CEO, Electra Real Estate, noted that the company “is continuing to operate and expand its activities in the residential rental segment in southeastern USA, an area that enjoys positive immigration data and high employment levels, and accordingly, we are experiencing lively demand, with high level occupancy in our properties at 95%, and high level rental collection in the company’s assets at some 97%.”
“As a result, we have recently begun activities related to detached homes, a field that complements residential clusters. We plan on significantly expanding activities in this area together with our entry via investment funds into the field of hoteling where we have identified value creating potential.”