Delek Glbl Share Discussion Threads

[grollfam] 28/2/2010 12:07

Delek Real Estate loses NIS 75m Industrial Building sale
Yitzhak Tshuva's company will record most of the loss in its financial report for 2009.
Avi Shauly 25 Feb 10 17:44


Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) has sold another asset in its strategy to refocus on two core businesses: residential development in Israel and income producing properties overseas. The company today sold its remaining 10.38% of Fishman Holdings subsidiary Industrial Buildings Corp. (TASE: IBLD) for NIS 204 million, in an off-floor deal. The company expects to report a loss of NIS 75 million on the sale. The company will record most of the loss in its financial report for 2009.
Delek Real Estate sold almost 33 million Industrial Buildings' shares at NIS 6.20 per share. It will use part of the proceeds to repay a NIS 150 million loan from Bank Hapoalim (TASE: POLI).

Delek Real Estate originally owned 15% of Industrial Buildings, before selling a third of stake in two separate deals: 2.1% of the company in December 2009 for NIS 41.3 million, and 2.3% earlier this month for NIS 55 million.

Delek Real Estate booked its holding in Industrial Building at NIS 435 million. Even after a 22% rise in the share in the past 12 months, the share price is still half its peak reached in May 2007.

The sale included the sale of 3.2 million Industrial Buildings' shares for NIS 20 million to Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5), a subsidiary of Delek Real Estate's sister company, Delek Group Ltd. (TASE: DLEKG).

Delek Real Estate share fell 3.5% to NIS 3.75, giving a market cap of NIS 726 million. Industrial Buildings' share fell 1.1% to NIS 6.13, giving a market cap of NIS 2 billion

Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

[kenny] 27/1/2010 21:17

Grollfan

I am away for a few days so could I please ask you to kindly copy the article to Yossi Friedman and ask him to comment; specifically a) where is this loan to Roadchef of NIS 84m reflected as it does not appear in the transactions with associated parties section of the accounts to 30.09.09, b) if true, why did DGRE make a loan to Roadchef when there is no business connection between the two and c) any other questions you feel appropriate.

Please post back Mr Friedman's comments. Many thanks.

[grollfam] 27/1/2010 19:17

kenny

Seen This ???

The Israel Securities Authority has notified Delek Real Estate, which is controlled by Yitzhak Tshuva, that the authority's investigation regarding the management of the company in recent years, when it was headed by CEO Ilik Rozanski, is focusing on activities involving three assets held by companies under Delek Real Estate's control in Britain: a chain of 29 Road Chef highway service centers, a group of Hilton and Marriott hotels and a portfolio of 16 parking lots, TheMarker has learned. Regarding Road Chef, the agency is investigating Delek Real Estate subsidiary DGRE's dealings with the chain's operator and the fact that it was only in the third quarter of 2009 that DGRE made provision for NIS 84 million that it said it could not collect from the operator. Among other matters, the authority is looking into the valuation of the parking lots. On Thursday, Ma'alot S&P lowered Delek Real Estate's bond rating from A- to BBB. Tshuva's company also deferred raising NIS 100 million through a rights offering and got a 3-month, NIS 50 million loan from Bank Hapoalim to tide it over to meet its bond obligations for the first two months of 2010. (Michael Rochvarger)

[kenny] 27/1/2010 11:34

grollfam

I see your point but I do not think it is a case that they have taken out more short term loans, rather, with the passage of time some of the long term loans have become short term loans. Other than repaying the loans relating to the properties sold there was minimal loan repayment but £50m of loans replaced existing loans. My point is that they do not have a problem, to date at least, in refinancing loans when they come up for repayment

NAV of 163p is presumably based on the Dec. 08 property values less the two valuation write downs of £52m and £22m.

[grollfam] 27/1/2010 09:46

KENNY

Not quite accurate. The long term bank loans are down LESS than the increase in short term loans! Also there are liabilities associated with assets for sale of £64m where those assets have been reflected as nil!



However the NAV is 1.63 – not sure how valued. I would have hoping for more sales and degearing.

[kenny] 26/1/2010 23:44

I welcome the fact that assets are written down in the financial statements for the 9 months ended 30 September 2009. It serves to give shareholders a clearer picture of actual net value. The stated NAV of 163p is a lot more than I was expecting and therefore I would not be surprised if there were further write downs in property values in subsequent quarters. I also note they do not seem to have any problems in obtaining new loans of £50m, which were applied to replace existing loans.

It is not easy to work out the net rental income for the period before impairments and revaluations because this is clouded by the change in presentation of the financial statements. It is also made difficult by the fact that changes in the value of financial instruments now appears in financing costs e.g. one needs to exclude a £36.3m gain on financial instruments which seems to be included in finance income. With all those caveats, my best calculation/guess is that net rental income was 8.64p for the 9 months; so on a pro rata 12 month basis may be about 11.5p for the 2009 year. Fourth quarter 2009 income will probably slightly exceed the 2.25p dividend paid in December 2009, so DGRE should end the year with at least £39m cash in the bank.

In conclusion, prospects for dividends in 2010 appear very good with 11p or 11.5p feasible, if not slightly more.

[grollfam] 26/1/2010 18:59

yup, but we have had 3 dividends of 12,5p in the last 6 months......

[tiltonboy] 26/1/2010 12:16

NAV down to 163p at 30th September.

[grollfam] 24/1/2010 15:09

Delek Real Estate sells land, gas stations in bid to refocus
The company sold holdings to Delek Israel.
Hillel Koren 24 Jan 10 15:48


Delek Real Estate Ltd. (TASE: DLKR) has sold its stakes in gas stations and land as the company pursues CEO Eran Meital's strategy to refocus the company on core business. Wholly-owned subsidiary Delek Real Estate Income Producing Properties Ltd. sold its 50% stakes in three gas stations - Ein Yahav Delek Ltd., Delek-Saadon Projects Initiation and Development Ltd., Orhan Mei Megiddo Ltd. - as well as its 50% stake in Delek Retail Land Ltd. and a 3,884-square meter lot in Ra'anana to Delek Israel Fuel Corporation Ltd. (TASE: DLKIS) for NIS 42.5 million altogether.
Yitzhak Tshuva directly controls Delek Real Estate, and controls Delek Israel through Delek Group Ltd. (TASE: DLEKG).

Delek Israel already owns the other half of Delek Retail Land. Third parties own the remaining stakes in the Ein Yahav Delek, Delek-Saadon, and Orhan Mei Megiddo, and the sale of Delek Real Estate's holdings in them depends on the third parties not exercising their right of first refusal.

The breakdown of the sales is: Ein Yahav Delek - NIS 15.4 million, Delek-Saadon (which owns the Esther Cinema gas station in Ashkelon) - NIS 7.6 million, Orhan Mei Megiddo NIS 4.3 million, Delek Retail Land - NIS 6.2 million, and the Ra'anana lot - NIS 9 million.

Meital said, "Delek Real Estate will continue to implement our strategy of the past months to sell properties in Israel and abroad that are not part of our core businesses. The company will continue to own properties overseas through Delek Global Real Estate Ltd., and residential properties in Israel through Dankner Investments Ltd. "

Delek Real Estate's share fell 3% to NIS 3.83, and Delek Israel's share fell 1.6% to NIS 159.10.

Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2010

[grollfam] 16/1/2010 15:30

Delek Real Estate sells Haifa Mall
Azrieli Group is now the sole owner of the mall, after also buying Summit Real Estate's stake.
Adi Ben-Israel 14 Jan 10 14:56


Delek Real Estate Ltd. (TASE: DLKR, controlled by Yitzhak Tshuva, has sold its 70% stake in the Haifa Mall Azrieli Group for NIS 211 million, as Delek Real Estate CEO Eran Meital continues his sell-off of assets in order to meet the company's commitments. "Globes" reported the planned deal earlier this month.
Delek Real Estate will use proceeds from the sale to repay its NIS 124 million loan taken to buy the mall, and it will remain with a cash flow surplus of NIS 87 million from the deal. The company said it does not expect to report any material capital gain on the sale.

Azrieli Group, owned by David Azrieli, also bought the 22.7% stake in the Haifa Mall owned by from Summit Real Estate Holdings Ltd. (TASE: SMT), Delek Real Estate's partner in the mall. Summit said that it will report a capital gain of NIS 3 million on its NIS 68 million share of the deal, after paying off the debt on the property.

Delek Real Estate's share rose 1% by mid-afternoon today to NIS 3.98, giving a market cap of NIS 736 million. Summit Real Estate's share rose 0.5% to NIS 6.09, giving a market cap of NIS 336 million.

Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

[tiltonboy] 11/1/2010 11:20

Horse,

Thanks for pointing that out, I have e-mailed the company to be put on the list.

tiltonboy

[grollfam] 11/1/2010 11:18

Well spotted Horse19 !!!!

[horse19] 11/1/2010 10:25

RNS Number : 3202F
Delek Global Real Estate PLC
11 January 2010






Not for release, publication or distribution in whole or in part in, into or from any jurisdiction (including the United States) where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.







11th January 2010







Delek Global Real Estate plc

("DGRE" or the "Company")




PROVISION OF QUARTER AND INTERIM ACCOUNTS OF THE COMPANY TO SHAREHOLDERS







The board of DGRE announces that it resolved in its meeting held on 6th January 2010 that shareholders of the Company, upon request, will be entitled to receive a copy of the quarter/interim accounts of the Company.










For more information, please contact:

Delek Global Real Estate plc

Yossi Friedman, CFO and Director

Tel: [phone]

Email: [e-mail]

[flying pig] 01/1/2010 13:12

Wishing everyone a prosperous 2010 and a decent dividend stream from DGRE in the coming months. The major shareholder certainly needs it!

[grollfam] 24/12/2009 13:26

Kenny

as long as it is not DGRE buying that rubbish !!!!

[kenny] 24/12/2009 11:53

This is one way of solving the Roadchef problem, pass it to another group member! Would not be too happy if I was a Delek Group shareholder - DRE was demerged from Delek Group in order to remove DRE's heavy debts from the consolidation - 9 months later Group takes over the Roadchef debt. Anyway, I am sure DGRE will continue to pay good dividends and, in the longer term, DGRE may be re-floated on the London or another market.
========
Delek Group mulls Roadchef acquisition from sister co
Delek Group will assume Delek Real Estate's debt taken to acquire Roadchef.
Adi Ben-Israel 24 Dec 09 13:12

More than a year after Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) put British motorway services company Roadchef up for sale, no buyer has been found. Tshuva now appears to have found the answer: Delek Group Ltd. (TASE: DLEKG), which he also controls, will acquire the company. Delek Group and Delek Real Estate are in talks on a deal, under which Delek Group will assume Delek Real Estate's debt taken to acquire Roadchef.
The sale of Roachef is part of Delek Real Estate's new strategy inaugurated by its fresh CEO Eran Meital to sell off the company's non-core businesses to focus on two holdings: Delek Global Real Estate Ltd. and its Israeli arm, Dankner Investments Ltd.

Roadchef operates 29 service compounds, with petrol stations, restaurants, cafes, and hotels, on Britain's motorways. Delek Group acquired the company in early 2007 through Delek Real Estate, then a subsidiary, and Delek Petroleum Ltd. (TASE: DLKP.B7; DLKP.B8) for ₤158 million. Delek Real Estate's share of the deal was ₤120 million.

Delek Real Estate took a ₤150 million loan from Merrill Lynch to finance the acquisition. Last year, it took an additional NIS 310 million owners loan from Delek Group to refinance part of the Merrill Lynch. Roadchef itself owes ₤180 million in bonds issued to banks.

If Delek Group acquires Roadchef, it will assume Delek Real Estate's NIS 310 million owners loan as well as Roadchef's outstanding debt. The total debt assumed will exceed NIS 1 billion.

The talks between Delek Group and Delek Real Estate are still only preliminary. Delek Real Estate is also in talks with other potential buyers for Roadchef. Delek Group nevertheless believes its takeover of Roadchef is good for both it and Delek Real Estate because this will reduce Delek Real Estate's debt. For Delek Group, taking over Roadchef would be synergetic with other gas station operations in Europe, held through Delek Petroleum and Delek Israel Fuel Corporation Ltd. (TASE: DLKIS) units Delek Europe Holdings Ltd. and Delek Benelux BV.

Delek Group's share rose 2% in morning trading to NIS 737.50, giving a market cap of NIS 8.24 billion. Delek Real Estate's share rose 2.8% to NIS 3.64, giving a market cap of NIS 663 million.

Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2009
===

[kenny] 17/12/2009 00:04

It appears the recent spike upwards in the share price of DRE, which has now been fully reversed and some, was because of a "possible capital infusion into Delek Real Estate." Also, Roadchef debt has been downgraded again this week on the view cashflow is not covering debt commitments.

I think this confirms a) that DRE is in serious financial trouble and b) the subsequent share price drift downward suggests ordinary shareholders could be serverely diluted if not wiped out.

We live in interesting times, or put another way, keep those dividends from DGRE coming!!

[flying pig] 07/12/2009 08:31

Interestingly the DGRE website hosting appears to have been transferred and as a consequence is off-line this morning.

In my view DGRE should be pretty well insulated from any problems of the parent company. The majority of the DGRE debt is non-recourse, and the lending institutions would have taken a serious look at the security valuations! occupancy rates appear to be good, credit quality appears to be good, funding appears to be reasonably long-term, leases are reasonably long-term, and an ongoing cash surplus should generated at enabling significant dividends.

It is separately audited, has some independent non-executive directors (undoubtedly they have been under pressure) and at least until recently the company was subject to the listing rules of AIM. In any case all the directors have a fiduciary duty to all shareholders.

the problems of the parent probably mean that there is extra pressure to generate cash, which may be to our advantage.

[kenny] 07/12/2009 01:15

Too early to say what the impact on DGRE will be.
The offer document of 24 March 2009 had independent valuations attached so it could not be these albeit exact valuation then and even now is a bit subjective until a sale occurs.
In terms of "improper accounting measures", I am an accountant so have studied all the accounts of DGRE and there is nothing obvious. The only accounting matter one could question in DGRE is the transfer of £52m of property to the category "available for sale". These properties were the interest in the Marriott and Hilton hotels and were valued at cost, so are probably worth a lot less –see note 10 of the 2008 accounts. We also know they may have been a fundraising although when I asked the company about this they stated they had not been contacted. However, net of attached non-recourse debt this only amounts to about 14p per share for DGRE.
Therefore, I suspect the matter relates to other "foreign properties" namely Roadchef although until we are told the details one cannot be sure and the article does specifically refer to DGRE as a foreign subsidiary. Presumably they have undertaken some "accounting measures" with Roadchef so that it is not in breach of its covenants.
DRE should be suspended on the Israeli stock market because the doubt will surely pummel its share price in coming days. This could be the first act in DRE going bust or being bailed out by Yitzhak Tshuva, if he has the free capital. Delek Group, in which he owns about 60% has been the best performing stock on the market this year after being one of the worst in 2008 but I certainly have no idea of his overall financial commitments – other than the half share in a Las Vegas plot bought by his private company and which might be worth about half what he paid for it. His private group also has a lot of property in Canada but that might be charged and also supporting the big loan on the Las Vegas plot, which is sitting undeveloped and not bringing in any rent.
In summary, lots of unknowns at present but I think DGRE should be all right. Until the position becomes clearer, the only comfort we may have at present is that a) the 2008 rents gave a yield valuation basis of 6.6% so possibly we are not too overvalued at those figures and b) presumably the Israeli institution that bought more than 5% would not have done so if there was aggressive accounting in DGRE.

[grollfam] 06/12/2009 21:34

HOW WILL THIS IMPACT ON DGRE ??????????



Securities Authority raids Delek Real Estate offices

The Israel Securities Authority is investigating whether Delek Real Estate Ltd. (TASE: DLKR, controlled by Yitzhak Tshuva, made improper accounting measures to inflate the value of foreign properties. On Thursday, Securities Authority investigators raided the company's offices in Ramat Gan, and questioned CEO Eran Meyital and CFO Daniel Leventhal.
The events under investigation occurred before either man was appointed to his present post. Delek Real Estate's share fell 4.3% by mid-afternoon on the TASE to NIS 3.60, giving a market cap of NIS 187 million. The company's three bonds traded on the TASE fell by 2.5-4.4%.

Delek Real Estate confirmed the raid in a one-line notice to the TASE today.

So far as is known, the Securities Authority opened the investigation several weeks ago in the wake of the sudden resignation of former CEO Yarom Oren, who replaced longstanding CEO Ilik Rozansky in July, after his eight years in the job. Delek Real Estate went public during Rozansky's tenure.

Oren resigned only six weeks after his appointment, saying that he lacked the necessary experience in real estate. The claim startled the market, since his appointment was no hasty act, but came after the company's appointment's committee reviewed him and other candidates, and given the fact that Delek Real Estate is obviously a real estate company. The Securities Authority was skeptical about Oren's stated reason for his resignation.

Suspicions grew after Oren gave an interview shortly after his resignation, in which he said, "No one knows what the company's future will be. That will depend on a lot of things, including whether it made reasonable transactions."

The third act that aroused the Securities Authority's suspicions was an interview with "Globes" by Meytal. He revealed that he intended to launch an aggressive sell-off of properties to the tune of several billion shekels. The sell-off implies trouble at the company.

Delek Real Estate said in response, "Delek Real Estate is cooperating in full and with understanding with the Securities Authority. The company is doing, and will do, everything in its power to ensure that the Securities Authority's investigation concerning a number of properties of foreign subsidiaries will be concluded as quickly as possible."

Yitzak Tshuva owns 50.74% of Delek Real Estate, and Bank Hapoalim (TASE: POLI) owns 9.68%. The company's foreign subsidiaries include Delek Global Real Estate Ltd., which delisted from London's Alternative Investment Market (AIM) earlier this year.

Published by Globes [online], Israel business news - www.globes-online.com - on December 6, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

[kenny] 01/12/2009 23:55

From today's Israeli market report:
===
Delek Real Estate Ltd. (TASE: DLKR rose 4.8%, after narrowing its net loss to NIS 449 million for the third quarter. The Real Estate 15 Index rose 3.6%.
===
Guess it still needs dividend income from DGRE?!?!?

[tiltonboy] 01/12/2009 15:30

Kenny,

I do not expect to sell them. Happy to hold, and would buy more in the low 40's.

tiltonboy

[kenny] 01/12/2009 14:46

Don't think you will find anyone to pay you 80p but good luck.

At this yield, I am willing to hold in an unquoted company and be a minority. But if someone wants to buy out the minorities or the whole company, then I think the price has to be a lot higher than 80p.

[tiltonboy] 01/12/2009 14:44

I would take a discount to fair value to be out of an unquoted, and majority owned company.