Corporate Profile

Melisron and its subsidiaries (the “Company”) owns and manages high-quality income-producing properties situated in the centers of Israel’s big cities.

The Company focuses on retail properties in central locations at the heart of big cities and on office complexes that are mainly marketed to international and Israeli high-tech companies.

As of March 31, 2021, the Company owns and manages 26 income-producing properties spanning approx. 814 thousand sqm of leasable space with high occupancy rates of approx. 98%, and 26 thousand parking spaces in addition thereto.

The Company’s shares are listed on the TA-35 Index, the flagship index of the Tel Aviv Stock Exchange (TASE), which includes the 35 companies with the highest market cap on TASE that meet the Index’s threshold conditions, as well as on the Tel Aviv Real Estate Index and the Tel-Dividend Index.

The Company’s Objectives and Goals

The Company operates and manages its business for the betterment of its properties, for maximum income generation from such properties and in order to bring about the development and growth of the Company’s business. In order to reach these objectives, the Company operates in the following manner:

  • Making frequent investments in the upgrading and appearance of the properties, diversification and adjustment of the mix, improvement of the existing properties and exhaustion of the existing rights therein.
  • Continuing to invest in the development of a strong and effective customer club, “My Ofer”, and creating marketing campaigns in collaboration with the Company’s customers.
  • Infusing the malls’ activities with innovation and creativity, with an emphasis on digitization, while creating additional value for tenants and visitors.
  • Maintaining the financial robustness while extending the average duration of the debt, reducing financing costs and maintaining direct access to the capital market.
  •  Continuing the development and construction of projects according to original schedules.
  •  Implementing the Company’s strategic plan to strengthen and maintain its core business through betterment of the malls and promotion of processes supportive of the core business, alongside development of operations in new areas, both by way of betterment of existing properties through multi use and by way of entry into new real estate segments.

From the CEO

The last quarter was characterized by two completely different periods – until February 20, 2021, the Company’s malls were closed due to directives of the Government of Israel. Upon the removal of the closure, on February 21, 2021 the Company’s malls opened, shoppers returned en masse to the malls, and all of the stores resumed operations under the Purple Badge rules as stipulated by the Ministry of Health. We believe that the continued decline of Covid-19 and the full opening of the economy will allow the Company to come back and present excellent results.

In this spirit, beginning from the date the malls were opened until the end of the quarter, the Company’s malls returned to present impressive results with an increase of approx. 26% in the tenants’ store revenues, compared with the same period in 2019[1], prior to Covid-19. In March, the store revenue record of previous years was broken, and the entry of over six million visitors to the Company’s malls was also recorded. The increase in store revenues was especially noticeable in the fashion and footwear area, which recorded an increase of approx. 36%, and in home design stores which recorded an approx. 62% increase.  The trend also continued in April, when we saw an increase in store revenues according to RIS figures, compared with the same period.

In addition, the Company continued to maintain high occupancy rates despite the period of crisis and the long closures of the economy, attesting to the strength of the Company’s properties. At the same time, during Q1/2021 the Company signed approx. 150 new contracts and option renewals with an approx. 5% increase in rent in real terms.

In the area of finance, since the beginning of the year the Company has carried out two successful bond issues (one of them after the balance sheet date), which implement the financial debt management strategy to reduce the real interest rate and extend the average duration of the debt, while preparing for the repayment scheduled in the coming year. These issuances attest to the capital market’s significant vote of confidence in the Company.

The Company is continuing to work to realize its strategic plan to strengthen and maintain its core business through betterment of the malls and promotion of processes supportive of the core business, alongside development of operations in new areas, both by way of betterment of existing properties through multi-use and by way of entry into new real estate segments.

[1] The increase in store revenues is measured by comparing the working days in Q1/2021 to Q1/2019 (Q1/2019 working days standardized to 2021), without the revenues of movie theatres, which remained closed.

improved business results in 2021.