Bethel Finance: Equity One swings to loss in Q4

www.bethelfinance.com
Gazit-Globe Ltd. (NYSE: GZT; TASE: GLOB) US subsidiary Equity One Inc. (NYSE: EQY) reported a weak fourth quarter, but revenue and profit growth for 2011 as a whole.

Fourth quarter revenue rose to $75.8 million from $59.2 million for the corresponding quarter of 2010. Funds from operations (FFO) rose to $30.5 millhttp://www.blogger.com/img/blank.gifion ($0.25 per share) for the fourth quarter from $25.8 million for the corresponding quarter, but the company posted a net loss of $3.7 million ($0.04 per share), compared with a net profit of $8.3 million.

"Full-year revenue rose to $291.9 million in 2011 from $230.4 million in 2010. FFO rose to $146.8 million ($1.21 per share) in 2011 from $92 million in 2010, and net profit rose to $33.6 million ($0.29 per share) from $25.1 million" says Mr. Peres Sailam from Bethel Finance Ltd.

Equity One had $103.5 million in cash and cash equivalents at the end of 2011, and $138 million drawn on its revolving credit facilities.

Equity One CEO Jeff Olson said, "We were active capital recyclers during 2011 with over $1 billion of acquisitions and $700 million of dispositions. These transactions significantly upgraded and diversified our portfolio into our core markets of New York, Boston, San Francisco, Los Angeles, Atlanta, and Miami."

Harel Finance analyst Elad Kraus said, "Equity One is fully priced (just like First Capital Realty Inc. (TSX:FCR) (Gazit-Globe's Canadian subsidiary)), and Gazit-Globe's value creation will probably come from Europe through Atrium European Land Ltd. (ATX: ATR; Euronext: ATRS). Gazit-Globe is traded at a discount of 13.5%, its average discount compared with the past."

Equity One's share price fell 0.4% in New York yesterday to $19.53, giving a market cap of $2.24 billion. Gazit-Globe owns 46.8% of Equity One. Its share price fell 1.2% by midday on the TASE to NIS 38.38, after 0.2% in New York to $10.40, giving a market cap of $1.74 billion.