Melisron and its subsidiaries (the “Company”) is the owner and manager of high-standard income-producing properties in the centers of Israel’s largest cities.
The property portfolio focuses on retail properties in prime locations in the centers of the largest cities and in office complexes which are mainly marketed to international and local high-tech corporations.
As of March 31, 2020, the Company owns and manages 24 income-producing properties, with an area of approx. 833 thousand sqm of leasable areas which have a high occupancy rate of approx. 96%, as well as 26 thousand parking spaces.
The Company is traded in the TASE’s flagship TA-35 index, which includes the 35 shares in the TASE with the highest market value which meet the index’s prerequisites and the Tel-Div index.
Company’s targets and objectives
The Company operates and manages its business to create long-term value by generating a stable cash flow and perpetually increasing value of its properties. In order to reach these objectives, the Company operates in the following manner:
- Actively managing all of the properties in order to create high revenues for the tenants which will be used as a driver for continued growth in rent prices
- Streamlining operations in properties
- Taking an entrepreneurial approach to the betterment of the mix of malls in accordance with customers’ preferences
- Increasing the property base through mergers, acquisitions, development and establishment of new properties
- Making frequent investments in the upgrading and appearance of the properties, improvement of the existing properties and utilization of the existing rights therein
- Focusing on commercial income-producing property and offices
- Maintaining the financial robustness and direct access to the capital market.
From the CEO
From the beginning of 2020 until mid-March, the Company continued to demonstrate high performance. During March, following the spread of COVID-19, the activity of the Company’s malls and commercial centers was almost completely halted due to their closure.
From that moment on, the Company focused on a solution to the crisis in which befell the entire economy and the Company in particular, in a number of aspects:
- Reduction of the operational expenses of the Company during the period when the malls were closed.
- Strengthening the financial soundness of the Company through raising of bonds with long average duration and raising additional credit facilities from banks.
- Adjustment of the Company’s malls to the new routine upon their reopening and their adjustment to the Ministry of Health’s guidelines in order to protect the health of the customers.
- Preparation of a relief program and a dialogue with the tenants, with the objective of making it possible for each tenant to get through this initial period in which the Company’s malls resumed operations.
- The Company believes that the operational and financial steps which is took during the crisis and the crisis exit strategies that it formed during this period, have and will allow it to weather the crisis. Insofar as a gradual return to routine business, entertainment and leisure activity will be possible, then, following the return to routine, the Company will be able restore the volume of activity that it had prior to the crisis and demonstrate good operational performance.
According to RIS figures, from the reopening of the malls until May 17th, an increase of 10% was recorded in the revenues of the regional and neighborhood malls, as compared with the same period last year, and a decrease of 10% in the revenues of the city malls as compared with such period. In the Company’s estimation, the expected opening of the cafes, restaurants and movie theaters will improve the figures.
Concurrently, the Company is continuing development of projects under construction, in order to ensure its continued future development.