Gazit Globe : Q1 2019 Conference Call Presentation

GREAT THINGS HAPPEN WHEN	FINANCIAL RESULTS
YOU OWN GREAT REAL ESTATE	FIRST QUARTER 2019

	BRIDGE TOWER|NEWYORK	G | KFAR SABA		INTERNACIONAL SHOPPING|SÃOPAULO
G-CITY|RISHON LEZION

G - TZAMERET | TEL AVIV		SHOPPING LIGHT|SÃOPAULO	BRICKELL GATEWAY I MIAMI I FL

CEASAR'S BAY BAZAAR I BROOKLYN I NEW YORK

GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE

DISCLAIMER

This presentation may include forward-looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues. Forward-looking statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other financial items. Forward- looking statements may also relate to our business strategy, goals and expectations concerning our market position, future operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and can be identified by the use of forward-looking terminology such as the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases.

Any forward-looking information contained in this presentation is based, in addition to existing information of the Company, on present Company expectations and evaluations regarding future developments and trends and on the interaction of such developments and trends. Although we believe the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect. Our business and operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current expectations and are not guarantees of future performance.

Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in this presentation depending on a variety of factors including those described in greater detail in our Periodical and Annual Reports, Registration Statement on Form F-1, Registration Statement on Form F-3, Annual Report on Form 20-F and in other information we file and furnish including, but not limited to, with the Israel Securities Authority, the U.S. Securities and Exchange Commission, and the Canadian Securities Administrators, including under the heading "Risk Factors."

All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable securities laws, we undertake no obligation to update any information contained in this presentation or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this presentation.

The information contained herein does not constitute a prospectus or other offering document, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Gazit-Globe Ltd. or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with or relating to any action, contract, commitment or to the securities of Gazit-Globe Ltd.

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FIRST QUARTER 2019

STRONG OPERATIONAL PERFORMANCE OF THE PORTFOLIO

Same Property NOI growth in the quarter (excluding Russia) of 2.7% compared to Q1/2018 NOI (proportionate) increased by 8.5% in the quarter IMillion NIS

	10.9%
5.2%			2.7%		331
1.4%		1.1%
		305
-0.3%
Canada - FCR Northern EuropeCentral Eastern	Brazil	Israel	TOTAL*
Europe*			Q1/2018	Q1/2019

• Same Property NOI in Central and Eastern Europe including Russia grew 0.2% and 2.3% on the Group Level.

Directly held investments comprises 50% of the	Operating Cash Flow Per Share in the Quarter	FFO per share in the quarter- Excluding Regency
portfolio	(Expanded Solo)***
Public 50%					INIS			INIS
								0.17
50%				0.57			w/o	0.70	0.91
Private	0.45					REG
31/3/2019 **									Q1/2018	Q1/2019
		Q1/2018		Q1/2019
** Including the acquisition of Marketplace in Boston	*** Before Special dividend from ATR.
completed in April 2019 for approx. US$ 81.8.

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GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE

FIRST QUARTER 2019

Main Highlights

Wholly Owned Subsidiaries

• NOI for the private subsidiaries in the quarter increased by 35.5% to NIS 103 million compared to NIS 76 million.
• Same Property NOI Growth in the quarter of 10.9% and 1.1% in Brazil and Israel, respectively.
• Same Property Sales in the quarter increased by 7.4% and 1.0% in Brazil and Israel, respectively.
• Average monthly base rent increased in Brazil and Israel.

						Average Monthly Base Rent		Same	Same
			NOI (NIS million)		Per Sqm
		Same			Property	Property
		Property NOI							Sales	Visitors
	Occupancy	(YoY)	Q1/2019	Q1/2018	Change %	31.3.2019	31.3.2018	Change %	Growth (1)	Growth (1)
Brazil	96.2%	10.9%	₪ 48	₪ 28	71.4%	BRL 67.0	BRL 58.0	15.5%	7.4%	10.8%
Israel	98.4%	1.1%	₪ 42	₪ 39	7.7%	₪ 108.3	₪ 105.7	2.5%	1.0%	4.0%
US	91.3% (2)	NA	₪ 9	₪ 5	80.0%	NA	NA	NA	NA	NA
Germany	NA	NA	₪ 4	₪ 4	-	NA	NA	NA	NA	NA
Total			103	76	35.5%

1. Same Propery Sales and visitors growth in Israel is calculated in a period between January to April 2019 comared to same period in 2018 due to the Passover timing which in 2019 took place in April while in 2018 Passover was in March.
2. Occupancy level in US exludes Brickell in Miami which will be demolished and Ceasar's Bay in New York which as of March 31, 2019 was 73.6% occupied and post the reporting date signed leases for most of its vacant space.

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Two ongoing projects are expected to be completed in the fourth quarter of 2019 and to increase the Company's NOI by

approx. NIS 22 million annually.

Four developments and expansions projects in planning stages in a total investment of approx. NIS 900-960 million (Company's share) which will increase the NOI by approximately NIS81-88million annually (Company's share).

Cost to

Expected Annual

Gross

Complete

Investment at

Expected

NOI, Gazit's

Leasable Area

(100%, NIS

31/3/2019 (NIS

Annual NOI

Share (NIS

Project

Location

(GLA, Sqm)

Use

Gazit's Share

Completion

million

million)

(NIS million)

million)

To be completed in 2019

G Kochav Hazafon

Tel Aviv, Israel

2,200

Retail

100%

Q4/2019

13

101

7

7

G Fashion

Rishon Lezion, Israel

13,265

Retail

100%

Q4/2019

63

107

15

15

Total Project to be completed in 2019

15,465

208

22

22

Development Pipeline in Planning Stages

Water Factory - Decathlon store and head quarters (Construction started)

Kfar Saba, Israel

13,611

Commercial &

25.5%

Q1/2021

164-174

13

12-14

3-3.5

Office

G Kfar Saba - expansion of the retail and office tower (zoning has been submitted for

Kfar Saba, Israel

40,000

Commercial &

51%

510-550

-

39-42

20-22

the office tower)

Office

Savyon- expansion of retail and office (zoning has been submitted and construction

Savyon, Israel

4,500

Commercial &

100%

Q1/2021

47-52

-

6.5-7.5

6.5-7.5

expected to start by the end of 2019)

Office

G City - Office tower (zoning has been submitted and objections date due at

Rishon Lezion, Israel

60,000

Commercial &

100%

615-645

-

52-55

52-55

14/5/2019 with no 3rd party objections)

Office

Brickell - Company is examining several scenarios for usage of the 48 stories

Commercial,

Miami, FL, US

35,000

Office and

100%

NA

building rights

Lodging

Total Development Pipeline in Planning Stages

153,111

(Company's share 119,900 sqm)

109-119

81-88

G KOCHAV HAZAFON, DEVELOPMENT

G CITY (DEVELOPMENT EXPANSION)

SAVYON, EXPANSION

Q4 2019

Q4 2019

Q1 2021

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GREAT THINGS HAPPEN WHEN YOU OWN GREAT REAL ESTATE

ISRAEL ISRAELGAZITISRAEL

DEVELOPMENT PIPELINE IN G CITY AND G KFAR SABA IN TOTAL INVESTMENT OF NIS 875-925 MILLION

G CITY OFFICE TOWER - INVESTMENT OF NIS 615-645 MILLION	G KFAR SABA OFFICE TOWER AND EXPANSION-
INVESTMENT OF NIS 260-280 (COMPANY'S SHARE*)

	ADDITIONAL BUILDING RIGHTS 60,000 SQM		ADDITIONAL BUILDING RIGHTS 40,000 SQM (COMPANY'S SHARE* 20,400 SQM)
Addition to G City, privately held 95,000 sqm GLA property on a land of approximately 19.7
The company is in the process of using its additional building rights to add
	acre in Rishon Lezion, the fourth largest city in Israel in part of Tel Aviv Metropolitan area.		prime commercial & office space to the existing shopping center.
		The Company submitted for building permit of 10,000 sqm (108,000 sqf)
The Company submitted zoning for 60,000 sqm (538,000 sqf) office tower based on		expansion of commercial space and a plan for 21 floors office tower on top of
	the commercial area in the size of 31,700 sqm (341,000 sqf).
	approved building right.Objections date due at 14/5/2019 with no 3rd party objections.
		Zoning has been submitted for the office tower and the commercial
			expansion.
			* Company's share - 51%		6

MARKETPLACE CENTER - RECENT ACQUISITION FOR APPROX. US$ 81.8 MILLION

MARKETPLACE CENTER I BOSTON I MA

15MANNUAL PEDESTRIANS FOOTFALL

389POPULATION WITHIN 3 MILES AREA (THOUSANDS)

$1063- MILE AVG.

HOUSEHOLD INCOME (TOUSANDS)

LEGEND

UNDERGROUND STATION

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NORTH AMERICA GAZITHORIZONS

MARKETPLACE CENTER I BOSTON I MA

$450MInvestment*

11ofNumberAssets

Miami

New York	Boston
47%
46%

IRREPLACEABLE ASSETS

WITHSTRONG

DEMOGRAPHICS

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* Assets value as of March 31, 2019, including JV (Ceasar's Bay) and the acquisition of Marketplace in Boston completed in April 2019 for approx. US$ 81.8.

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SÃO PAULO GAZITBRASIL

Mais Shopping - Expansion of approx. 8,700 sqm completed and the government agency opened its services within the center

MAIS SHOPPING |SÃOPAULO

Q1/2018 Q1/2019 Growth

R$4.6M R$6.1M 33.3%

NOI

3.1M 3.7M 21.2%

Visitors

R$46M R$53M 14.9%

Sales

Gazit Brasil owns 7 assets in São Paulo metropolitan area with a total investment of approx. R$2.9 billion.

Occupancy as of March 31, 2019 is 96.2%, Same property NOI increased 10.9% compared to same quarter in 2018, Same Property Sales and visitors increased by 7.4% and 10.8% in the quarter compared to same quarter in 2018.

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GAZITGLOBE

BUSINESS PLAN IN PROGRESS

INCREASING	80%	61%	50%		PRIVATE
OUR PRIVATE	20%	39%	50%		#SHARE451
INVESTMENT						>60%
SHARE		2015		2018(December 31)	31/3/2019 *		MID TERM
		80% / 20%					TARGET
				61% / 39%			#
							40% / 60%

PUBLICPRIVATE

WHILE REDUCING LEVERAGE

63.2%	62.0%	53.9%		<50%
	53.4%	45.6%
				MID
2015	2016 2017	2018	31/3/2019	TERM
				TARGET

* Including the acquisition of Marketplace in Boston for approx. USD 81.8 million.

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STRATEGY		GAZITGLOBE	Focus on major cities in densely populated areas
77%		OF GAZIT'S ASSETS* ARE LOCATED IN 14 METROPOLITAN AREAS
				STOCKHOLM	TAMPERE	STOCKHOLM			27%
				HELSKINI
				OSLO	HELSKINI	OSLO
				TALLIN
			COPENHAGEN	WARSAW	COPENHAGEN	26
				PRAGUE	TALLIN
				WROCLAW
		BOSTON		TAMPERE	ASSETS
	NEW YORK
		CENTRAL EUROPE:	14%
				TEL AVIV	WARSAW
MIAMI		PRAGUE			7
						WROCLAW
									ASSETS

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SÃO PAULO

• The Company's relative share of the total value of the assets of the subsidiaries.
• Including G. Kfar Saba, G. Rishon Lezion, Savyon and two land parcels.

NEW YORK	9%
BOSTON	11
MIAMI
ASSETS
SAO PAULO		14%
		7
		ASSETS
METRO TEL		13%
AVIV**
	10
		ASSETS
			11

G CITY I RISHON LE'TZION

FIRST QUARTER FINANCIAL

RESULTS 2019

41 WINTER STREET I BOSTON I MA

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FIRST QUARTER RESULTS 2019 - HIGHLIGHTS

	Q1/2019	Q1/2018	Change
NOI proportionate (NIS million)	331	305	8.5%
Same Property NOI growth	2.7%	3.7%	-
FFO (NIS million)	171	168	1.8%
FFO Per Share (NIS)	0.91	0.87	4.6%
FFO excluding REG (NIS million)	171	135	26.6%
FFO p/s excluding REG (NIS)	0.91	0.70	30.4%
Operating Cash Flow Per Share (expanded solo) (NIS)	0.57	0.45	26.7%
Net Profit (loss)	42	(486)	-
	31.3.2019	31.12.2018
Shareholders' Equity (NIS million)	8,540	9,301
Shareholder's Equity Per Share (NIS)	45.6	49.0
LTV (Expanded Solo)	45.6%	53.9%
LTV (Consolidated)	52.9%	55.3%

RAV CHEN MOVIE THEATRE I DIZENGOFF ST. I TEL AVIV

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GAZITGLOBE

FIRST QUARTER 2019 - Main Highlights

Operating Cash Flow Per Share in the Quarter (Expanded Sol	o)*	FFO per share in the quarter- Excluding Regency
NIS ו			NIS ו
				0.87	0.91
				0.17
	0.57		W/O	0.70	0.91
0.45			REG
Q1/2018	Q1/2019		Q1/2018	Q1/2019

• Before Special dividend from ATR.

NOI (proportionate) increased by 8.5% in the quarter

NIS million ו

331

ח''ש ו 305

Q1/2018Q1/2019

14

MORUMBI| SÃO PAULO

FINANCIAL

STRENGTH

KOCHAV HATZAFON | TEL AVIV		BRIDGE TOWER I NEW YORK I NY

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BUSINESS PLAN IN PROGRESS

Net Debt (expanded solo)	NIS million	LTV (Expanded Solo)

14,079 12,48111,177

7,382

2016 2017 2018 31/3/2019

Unencumbered Assets	NIS billion

76% of the private assets portfolio are unencumbered (compared to 51% in 2015), NIS 2 billion of them in Israel

6.3

2.2

31/12/2015 31/03/2019

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63.2%	62.0%	45.6% <50%
	53.4%	53.9%
			MID
2015	2016 2017	2018 31/3/2019	TERM
			TARGET
Liquidity - Company and it's wholly owned subsidiaries	NIS billion

In addition to a NIS 5 billion liquidity, proceeds from the sale of FCR shares in the amount of approximately CAD 166 million (NIS 440 million) shall be payed to the Company no later than April 16, 2020.

4.6	5.0		Unutilized
1.6
			signed credit
2.8				facilities
1.8	3.4		Cash and
			equivalent*

31/12/2018 31/03/2019

• Including the proceeds from the sale of FCR shares after the quarter.

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WELL STAGGERED DEBT MATURITY SCHEDULE -

EXPANDED SOLO AS OF 31/3/2019

Million NIS

3,000								12.1%
2,500					12.3%	12.9%				14.0%
	11.4%				11.1%
								12.0%
			9.9%	9.9%					10.0%
2,000
									8.0%	10.0%
1,500		1,031			1,106	1,166		1,088			8.0%
		896	894		997	906
1,000						726	6.0%
2.3%
500	209[1]										4.0%
0	(*)										2.0%
	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028
	6.5%	5.1%	4.9%	4.7%	4.6%	4.7%	3.3%	3.7%	3.9%	2.8%

• Weighted average bond maturity:5years
• Weighted average interest rate:) Including Credit Facilities)3.9%

1. Series 10 principal of NIS 209m with coupon of 6.5% which is secured by part of G City in Rishon Lezion, Israel.

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THANK YOUFOR YOUR TIME.

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CONTACT INFORMATION	Adi Jemini	Doron Lavi Segelson
	EVP & CFO	Head of Investor Relations
	+972.3.6948000	+972.3.6948037/ [e-mail]